Sunil Aggarwal, New Delhi v. ACIT, New Delhi

ITA 1168/DEL/2010 | 2001-2002
Pronouncement Date: 31-08-2010 | Result: Partly Allowed

Appeal Details

RSA Number 116820114 RSA 2010
Assessee PAN ADHPA0452G
Bench Delhi
Appeal Number ITA 1168/DEL/2010
Duration Of Justice 5 month(s) 15 day(s)
Appellant Sunil Aggarwal, New Delhi
Respondent ACIT, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 31-08-2010
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted G
Tribunal Order Date 31-08-2010
Date Of Final Hearing 25-08-2010
Next Hearing Date 25-08-2010
Assessment Year 2001-2002
Appeal Filed On 16-03-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH G : NEW DELHI) BEFORE SHRI RAJPAL YADAV JUDICIAL MEMBER AND SHRI B.C. MEENA ACCOUNTANT MEMBER ITA NOS.1167 TO 1172/DEL./2010 (ASSESSMENT YEARS : 2000-01 TO 2005-06) SHRI SUNIL AGGARWAL VS. ACIT CENTRAL CIRCLE 17 6068 GALI BATASHA KHARI BAOLI NEW DELHI. DELHI. (PAN : ADHPA0452G) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI PANKAJ MANGAL CA REVENUE BY : SHRI GAJANAND MEENA CIT DR ORDER PER BENCH : ALL THESE APPEALS FILED BY THE ASSESSEE ARISE OUT O F THE ORDERS OF CIT (APPEALS)-II NEW DELHI ALL DATED 27.1.2010 FOR THE ASSESSMENT YE ARS 2000-01 TO 2005-06. IN ALL THESE APPEALS COMMON GROUND OF APPEAL IS RELATED TO THE ADDITION SUSTAINED ON ACCOUNT OF HOUSEHOLD EXPENSES. THE ADDITIONS SUSTAINED IN DIF FERENT ASSESSMENT YEARS ARE AS UNDER : ASSESSMENT YEAR ADDITION (RS.) 2000-01 90 000/- 2001-02 98 000/- 2002-03 1 06 200/- 2003-04 1 59 720/- 2004-05 1 35 880/- 2005-06 1 02 939/- 2. THERE WAS A SEARCH OPERATION ON 13.12.2005 IN TH E CASE OF ASSESSEE AS WELL AS IN THE CASE OF BROTHER SHRI SANJEEV AGGARWAL AND MOTHER SMT. KAMLA DEVI. NOTICES U/S 153A OF INCOME-TAX ACT WERE ISSUED FOR THE VARIOUS YEARS. THE ASSESSING OFFICER MADE AN ITA NOS.1167 TO 1172/DEL./2010 2 ADDITION ON ACCOUNT OF HOUSEHOLD EXPENSES TREATING THE WITHDRAWALS AS INSUFFICIENT TO MEET THE EXPENSES. THE CIT (A) HAS SUSTAINED THE ADDIT ION IN ITA NO.1167/DEL/2010 HOLDING AS UNDER :- 4.3.1 AS REGARDS ADDITION FOR HOUSEHOLD EXPENSES IT IS SEEN THAT IN THE CASE OF SHRI SANJEEV AGGARWAL THE A.O. HAS ESTIMATED TOTAL HOUSEHOLD EXPENSES OF RS.1 20 000/-. THE ESTIMATIO N OF HOUSEHOLD EXPENSES AT RS.1 20 000/- IN THE CASE OF SHRI SANJE EV AGGARWAL FOR AY 2000-01 HAS BEEN UPHELD BY MY PREDECESSOR CIT(A) IN HIS ORDER DATED 27/7/2009 IN APPEAL NO.368/07-08: AS THE FAMILY BAC KGROUND AND THE SIZE OF FAMILY ETC ARE EXACTLY SAME IN THE CASE OF APPEL LANT ALSO I AM IN FULL AGREEMENT WITH MY PREDECESSOR. FOLLOWING THE ORDER OF MY PREDECESSOR IN THE CASE OF SHRI SANJEEV AGGARWAL I UPHOLD THE EST IMATION OF HOUSEHOLD EXPENSES AT RS.1 20 000/- IN THE CASE OF APPELLANT ALSO. AS REGARDS ALTERNATE CLAIM OF THE APPELLANT THAT THE A.O. HAS NOT GIVEN CREDIT OF RS.30 000/OF WITHDRAWAL MADE BY HIS WIFE (SMT .MANJ U AGGARWAL) ABOUT WHICH ACCORDING TO APPELLANT THE EVIDENCE WAS ALREA DY THERE IN THE RECORDS IT IS SEEN THAT IDENTICAL CLAIM WAS MADE F OR CREDIT OF WITHDRAWAL MADE BY WIFE OF SHRI SANJEEV AGGARWAL ALSO IN HIS C ASE. HOWEVER MY PREDECESSOR CIT(A) HAS NOT ACCEPTED THAT CLAIM BASE D ON THE REASONS GIVEN BY HIM IN HIS ORDER THAT SUCH WITHDRAWAL WOUL D HAVE TAKEN CARE OF HER PERSONAL EXPENSES AND NOTHING OUT OF THE SAME W OULD HAVE BEEN AVAILABLE FOR HOUSEHOLD EXPENSES. RESPECTFULLY FOL LOWING HIS DECISION AS DEMANDED BY JUDICIAL CONSISTENCY THIS ALTERNATE CL AIM OF APPELLANT IS ALSO NOT ALLOWED. THUS THE ENTIRE ADDITION MADE BY A.O. IS UPHELD ON THIS GROUND. IN OTHER ASSESSMENT YEARS CIT (A) HAS SUSTAINED TH E ADDITION ON THE SAME GROUNDS. 3. WHILE PLEADING ON BEHALF OF THE ASSESSEE THE LE ARNED AR SUBMITTED THAT THE ASSESSEE WAS LIVING IN A JOINT FAMILY WITH HIS MOTH ER BROTHER AND HIS FAMILY IN A HOUSE OWNED BY HIS MOTHER WITH COMMON KITCHEN AND ALL THE MEMBERS CONTRIBUTED TO THE HOUSEHOLD EXPENSES. THE ASSESSEE HIMSELF HAS MADE SOME CONTRIBUTION TO RUN THE FAMILY. HIS WIFE WAS ALSO MAKING THE CONTRIBUTION TO RUN TH E HOUSEHOLD EXPENSES OF FAMILY. THE ASSESSEE IS HAVING TWO CHILDREN WHICH WERE ALSO CH ILD DURING THE RELEVANT PERIOD. THERE WAS A WITHDRAWAL FROM THE WIFE OF THE ASSESSEE WHO WAS ALSO AN INCOME-TAX ASSESSEE. HE ALSO PLEADED THAT THE ITAT HAS SUSTAINED THE ADDITI ON IN THE HANDS OF BROTHER WHICH SHOULD BE TREATED AS A FUND AVAILABLE FOR THE HOUSEHOLD EX PENSES. ITA NOS.1167 TO 1172/DEL./2010 3 4. ON THE OTHER HAND LEARNED DR SUBMITTED THAT THE FAMILY OF THE ASSESSEE WAS EXACTLY OF THE SAME SIZE AS OF THE BROTHER. IN HIS BROTHERS CASE ITAT SUSTAINED PART ADDITION TOWARDS HOUSEHOLD EXPENSES. THEREFORE ON THE SIMILAR FACTS AT LEAST ADDITION TO THAT RATIO SHOULD BE SUSTAINED IN THE ASSESSEES CA SE ALSO. 5. AFTER HEARING BOTH THE SIDES AND PERUSING THE MA TERIAL AVAILABLE ON RECORD WE FIND THAT THE ASSESSEE COULD NOT JUSTIFY LOW WITHDRAWALS MADE BY HIM AND HIS WIFE WHICH COULD BE TREATED AS SUFFICIENT TO MEET THE HOUSEHOLD EXPE NSES. AT THE SAME TIME THE ASSESSING OFFICER HAS ALSO NOT BROUGHT ANY RECORD WHICH COULD SHOW THAT ESTIMATE MADE BY HIM WAS VERY MUCH PROXIMATE TO THE ACTUAL EXPENDITURE OF HO USEHOLD. KEEPING ENTIRE FACTS AND CIRCUMSTANCES IN VIEW AND KEEPING IN VIEW THE CONTR IBUTIONS MADE BY THE WIFE OF THE ASSESSEE TOWARDS HOUSEHOLD EXPENSES WE ARE OF THE VIEW THAT THE ASSESSEE DESERVES SOME RELIEF ON ACCOUNT OF ESTIMATION AND ACCORDINGLY WE GIVE THE RELIEF TO THE ASSESSEE IN THE FOLLOWING MANNER IN EACH ASSESSMENT YEAR:- S.NO. A.Y. ADDITION SUSTAINED BY CIT (A) RELIEF GIVEN TO ASSESSEE BY THIS ORDER ADDITION SUSTAINED BY THIS ORDER 1. 2000-01 90 000/- 45 000/- 45 000/- 2. 2001-02 98 000/- 49 000/- 49 000/- 3. 2002-03 1 06 200/- 53 100/- 53 100/- 4. 2003-04 1 59 720/- 79 860/- 79 860/- 5. 2004-05 1 35 880/- 67 940/- 67 940/- 6. 2005-06 1 02 959/- 51 479.50 51 479.50 6. IN THE RESULT ALL THE APPEALS OF THE ASSESSEE A RE PARTLY ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON THIS 31 ST DAY OF AUGUST 2010. SD/- SD/- (RAJPAL YADAV) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 31 ST DAY OF AUGUST 2010/TS ITA NOS.1167 TO 1172/DEL./2010 4 COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A) MEERUT. 5.CIT(ITAT) NEW DELHI. AR ITAT NEW DELHI.