No household expenses withdrawal claiming husband paid all expenses not justified – ITAT

Addition for no withdrawal for household expenses-Contention that husband met out all expenses did not justify nil withdrawal by assessee wife – ITAT

ABCAUS Case Law Citation:
ABCAUS 2549 (2018) 09 ITAT

No household expenses withdrawal claiming husband paid all expenses

The Case was selected for scrutiny through Computer Assistance Scrutiny Section (CASS) and notices u/s 143(2) and 142(1) were duly served upon the appellant assessee along with questionnaire.

The Assessing Officer (AO) while examining the audited capital account observed that during the relevant assessment year, the assessee had not made any withdrawal for household expenses.

Not satisfied with the reply of the assessee, the AO made an addition towards low house hold withdrawals for Rs. 1,50,000/-

The CIT(A) maintained the addition.

The Tribunal noted that as per the audited capital account no withdrawals were shown by the assessee for household expenses and it was claimed that the household withdrawals of her husband was sufficient.

The Tribunal observed that no cash had been withdrawn by the assessee towards household expenses.

The Tribunal opined that the contention that assessee’s husband took care of total household expenditure could not justify that the assessee was not required to make any withdrawal for household expenses.

The Tribunal confirmed the findings of CIT(A) for the addition of Rs.1,00,000/-.

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