The New Delhi bench of the Income Tax Appellate Tribunal (ITAT) directed re-adjudication to the assessing officer for making an addition to house hold drawings due to a delay in filing a reply to the notice issued by the assessing officer.
Brij Kishoare Kochar, the appellant assessee was living alone with his wife and was old and the details of expenses for household withdrawals were sufficient to meet the ends.
The assessee appealed against the order passed by the Commissioner of Income Tax(Appeals) for confirming the addition made by the assessing officer to the household drawings.
Tarangdeep Singh, the counsel for the assessee contended that the assessee filed additional evidence before the Commissioner which was in the form of a bank statement and called for a remand report from the assessing officer.
It was also submitted that the addition made by the assessing officer was not as per the law and the delay in filing the reply of notice was only due to reasonable cause.
Kanv Bali, the counsel for the respondent strongly opposed the contentions made by the assessee. It was also submitted that the assessee being a senior citizen was living at his own house with his wife with no other liabilities and the details of the expenses mentioned totaling to appear to be very reasonable as the expenses.
The two-member bench comprising N. K. Billaiya(Accountant) and C.N. Prasad( Judicial) held that considering the age of the assessee does not find any merit in the addition made by the assessing officer and directed to re-adjudicate the matter while allowing the appeal filed by the assessee.
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