AI Structured Summary
Not yet generated for this judgment
Judgment
PER SANJAY AWASTHI, ACCOUNTANT MEMBER:
This appeal arises from order dated 18.04.2018, passed by Ld. CIT(A)-IV, Kanpur, u/s 250 of the Income Tax Act, 1961 (hereafter as “the Act”). In this case, the main issue revolves around an addition of Rs.1,20,000/- on account of alleged low household withdrawals. It is seen that the assessee has also challenged the service of notice u/s 143(2) of the Act but has decided not to press the connected two grounds of appeal (GOAs 1 & 2).
The Ld. AO found that the assessee had not made any withdrawal for household expenses and thereafter estimated Rs.10,000/- per month as expenses met out of alleged unexplained sources. The Ld. CIT(A) confirmed this addition. Thereafter, the aggrieved assessee has approached the ITAT, where ground nos. 3 & 4 challenge this action of Ld. CIT(A).
Before us the Ld. AR argued that at that point of time the assessee was single and living with his parents and also the assessee was having rental income which was duly disclosed in the return of income, and this rental income was being received in cash only. The aggregate rental income in cash for the year under consideration was Rs.2,28,000/-. It was the submission that the assessee was using this income to support himself.
The Ld. DR relied on the orders of the authorities below.
We have considered the rival submissions and have gone through the documents before us. It is clear that the facts and circumstances of the case indicate that the assessee was having sufficient funds to meet household expenses and therefore, we agree with the contention of Ld. AR that no addition on account of low withdrawals is possible in this case. Accordingly, the impugned addition is directed to be deleted.
In the result, appeal is allowed.