Shri Pradeep Kumar Tayal, v. The ACIT 5 (1),

ITA 282/IND/2008 | 2004-2005
Pronouncement Date: 24-02-2010 | Result: Partly Allowed

Appeal Details

RSA Number 28222714 RSA 2008
Assessee PAN AATAT3583E
Bench Indore
Appeal Number ITA 282/IND/2008
Duration Of Justice 1 year(s) 8 month(s)
Appellant Shri Pradeep Kumar Tayal,
Respondent The ACIT 5 (1),
Appeal Type Income Tax Appeal
Pronouncement Date 24-02-2010
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted DB
Tribunal Order Date 24-02-2010
Date Of Final Hearing 01-02-2010
Next Hearing Date 01-02-2010
Assessment Year 2004-2005
Appeal Filed On 23-06-2008
Judgment Text
PAGE 1 OF 5 -. I.T.A.NO. 282/IND/2008 PRADEEP KUMAR TAYAL INDORE. IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH : INDORE BEFORE SHRI JOGINDER SINGH JUDICIAL MEMBER AND SHRI V.K. GUPTA ACCOUNTANT MEMBER PAN NO. : AATAT 3583E I.T.A.NO. 282/IND/2009 A.Y. : 2004-05 SHRI PRADEEP KUMAR TAYAL ACIT PROP. M/S. NEHA COTTON INDUSTRIES VS 5(1) INDORE. INDORE. APPELLANT RESPONDENT APPELLANT BY : SHRI R.P. MANDOVRA ADV. RESPONDENT BY : SHRI P.K. MITRA SR. DR DATE OF HEARING : 28.06.2010 O R D E R PER V.K. GUPTA A.M. THE ISSUE RAISED IN GROUND NO.2(A) HAS BEEN RECALLE D BY US IN THE MISC. APPLICATION FILED BY THE ASSESSEE VIDE OUR OR DER DATED 25.6.2010. THE DISPUTE IN THIS GROUND IS REGARDING QUANTUM OF LOW HOUSE HOLD WITHDRAWALS. 2. THE FACTS IN BRIEF ARE THAT THE AO FOUND THAT THE ASSESSEE HAD WITHDRAWN ONLY A SUM OF RS.20 000/- ON ACCOUNT HOUS E HOLD WITHDRAWALS AND HAVING REGARD TO THE STATUS AND SIZE OF THE FAM ILY THE AO ESTIMATED THE EXPENSES ON ACCOUNT OF HOUSE HOLD EXPENSES AT R S. 1 50 000/- AND PAGE 2 OF 5 -. I.T.A.NO. 282/IND/2008 PRADEEP KUMAR TAYAL INDORE. MADE AN ADDITION OF RS. 1.30 LAKHS. IN APPEAL BEFOR E THE LD.CIT(A) THE ASSESSEE PLEADED THAT HOUSE HOLD EXPENSES WERE NOT RS. 20 000/- AS APART FROM THE ASSESSEE RS. 22 000/- WERE CONTRIBUTED BY THE ASSESSEE HUF AND RS. 29 500/- WERE CONTRIBUTED BY ASSESSEES WIFE. T HE ASSESSEE ALSO SUBMITTED THAT ANOTHER SUM OF RS. 30 000/- WAS CONT RIBUTED BY BIGGER HUF. THE LD. CIT(A) HOWEVER REJECTED THE CLAIM OF THE ASSESSEE AS REGARD TO WITHDRAWALS BY BIGGER HUF AS NO SUCH PLEA HAD BEEN TAKEN BEFORE THE AO. THE LD.CIT(A) ACCORDINGLY TOOK THE HOUSE HOLD WITHDRAWALS AT RS. 71 500/- AND THEREAFTER PROCEE DED TO ANALYZE THE QUANTUM OF WITHDRAWALS WHICH COLD BE REASONABLE HA VING REGARD TO THE STATUS OF THE ASSESSEE. THE LD.CIT(A) FOUND THAT TH E ASSESSEE HAD DECLARED AN INCOME AT RS. 28 17 910/-. THE LD.CIT(A) FURTHER FOUND THAT THERE WERE NO WITHDRAWALS IN THE MONTHS OF OCTOBER NOVEMBER A ND FEBRUARY AND IN OTHER MONTHS WITHDRAWALS WERE VERY MEAGER. THE LD.C IT(A) CONFIR4MED THE ACTION OF THE AO REGARDING ESTIMATION OF HOUSE HOLD WITHDRAWALS AT RS. 1 50 000/-. HOWEVER THE LD.CIT(A) GAVE CREDIT OF RS. 71 500/- AS AGAINST RS. 20 000/- GIVEN BY THE ASSESSING OFFICER . AGGRIEVED BY THIS THE ASSESSEE IS IN APPEAL BEFORE US. 3. THE LD.COUNSEL FOR THE ASSESSEE MAINLY REITERATED T HE SUBMISSIONS MADE BEFORE THE REVENUE AUTHORITIES AND ALSO PLACED RELIANCE ON THE DECISION OF THE TRIBUNAL IN ASSESSE ES OWN CASE FOR PAGE 3 OF 5 -. I.T.A.NO. 282/IND/2008 PRADEEP KUMAR TAYAL INDORE. ASSESSMENT YEAR 2003-04 WHEREIN HOUSE HOLD EXPENSE S WERE ESTIMATED AT RS. 61 000/- UNDER SAME SET OF FACTS AND DREW OUR A TTENTION TO PARA 39 OF THE SAID ORDER. THE LD. COUNSEL HOWEVER WAS POSED WITH A QUERY AS REGARD TO JUSTIFICATION OF HOUSE HOLD WITHDRAWALS H AVING REGARD TO THE DECISION OF THE TRIBUNAL IN OTHER CONNECTED APPEALS WHEREIN CERTAIN ADDITIONS WERE MADE ON THIS ACCOUNT ON EITHER ON TH E BASIS OF CONCESSION OF THE ASSESSEE OR ON CONSIDERATION OF ACTUAL CIRCU MSTANCES EXISTING IN THE YEAR OF THE ASSESSEE AS POINTED OUT BY THE LD. SEN IOR D.R. IN THOSE APPEALS. THE LD. COUNSEL SUBMITTED THE COPY OF THE TRIBUNALS ORDER IN I.T.A.NOS. 279 & 280/IND/2008 I.T.A.NO. 213/IND/20 09 I.T.A.NO. 214/IND/2009 AND 215/IND/2009 ORDER DATED 11 TH MAY 2010 AND SUBMITTED THAT IN I.T.A.NOS. 279 & 280/IND/2008 ONL Y THIS ISSUE WAS INVOLVED. 4. THE LD. SENIOR D.R. ON THE OTHER HAND PREFERRED T O RELY ON THE ORDER OF THE LD.CIT(A). 5. WE HAVE CONSIDERED THE SUBMISSIONS MADE BY BOTH THE SIDES MATERIAL ON RECORD AND THE ORDERS OF THE AUTHORITIE S BELOW. 6. IT IS NOTED THAT IN I.T.A.NOS. 279/IND/2008 THE AS SESSEE HAS HIMSELF AGREED FOR AN ADMISSION OF RS. 30 000/- IN ADDITION TO TOTAL FAMILY WITHDRAWALS SHOWN BY THE ASSESSEE AT RS. 71 000/-. SIMILARLY IN I.T.A.NO. 280/IND/2008 THE ADDITION OF RS. 35 000/ - HAS BEEN SUSTAINED PAGE 4 OF 5 -. I.T.A.NO. 282/IND/2008 PRADEEP KUMAR TAYAL INDORE. IN ADDITION TO THE WITHDRAWALS SHOWN BY THE ASSESSE E. WE ARE FURTHER OF THE VIEW THAT APART FROM THESE TWO ORDERS THERE AR E OTHER ORDERS OF THE TRIBUNAL WHERE THE SIMILAR VIEW HAS BEEN TAKEN ON T HE BASIS OF FACTS IN SUBSEQUENT YEARS. THUS TAKING OVER ALL VIEW OF THE MATTER WE HOLD THAT THE ORDER IN I.T.A.NO. 761/IND/2006 CANNOT BE APPLI ED. WE FURTHER HOLD THAT CREDIT FOR RS. 30 000/- WITHDRAWAL BY LARGER H UF CANNOT BE CONSIDERED IN THE HANDS OF THE ASSESSEE IN THE ABSE NCE OF ANY EVIDENCE BEING BROUGHT ON RECORD TO THE EFFECT THAT SUCH WIT HDRAWALS WERE ACTUALLY MADE TO CONTRIBUTE TOWARDS THE HOUSE HOLD WITHDRAWA LS OF THE ASSESSEE. HAVING STATED SO NOW IN OUR VIEW THE TOTAL HOUSE HOLD EXPENSES OF THE ASSESSEE CANNOT BE LESS THAN RS.10 000/- PER MONTH AND THUS THE TOTAL WITHDRAWALS IS ESTIMATED AT RS.1.20 LAKHS. OUT OF T HIS A CREDIT OF RS. 71 500/- SHOULD BE GIVEN TO THE ASSESSEE FOR THE WI THDRAWALS SHOWN BY HIM. ACCORDINGLY THE ADDITION TO BE SUSTAINED ON T HIS ACCOUNT IS WORKED OUT TO RS. 49 500/- AS AGAINST RS. 78 500/- WORKED OUT BY THE CIT(A). BEFORE PARTING WE MAY ALSO ADD THAT THE DECLARATIO N IN SUBSTANTIAL INCOME THOUGH CANNOT BE CONCLUSIVE FACTOR TO DECIDE THE QU ANTUM OF HOUSE HOLD WITHDRAWALS BUT IT CERTAINLY HELPS IN ESTIMATING T HE REASONABLE AMOUNT OF HOUSE HOLD WITHDRAWALS. 7. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE STA NDS PARTLY ALLOWED. PAGE 5 OF 5 -. I.T.A.NO. 282/IND/2008 PRADEEP KUMAR TAYAL INDORE. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 30 TH JUNE 2010. SD/- SD/- (JOGINDER SINGH) (V. K. GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED :30 TH JUNE 2010. CPU* 28296