VIJAY KUMAR Vs. INCOME TAX OFFICER
INCOME TAX APPELLATE TRIBUNAL
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M.A.A.KHAN, J.M. : -
(1.) THIS is an appeal from the order of the Dy. CIT(A) dt. 31st December, 1991 confirming the following additions/disallowances.
(2.) (i) Addition of Rs. 10,000 The assessee is an Individual earning income from practising as a Medical Consultant. In the course of survey proceedings conducted on 25th October, 1988 under S. 133A of the IT Act, 1961 (The Act) at the business premises of the assessee it was known that the assessee had spent about Rs. 10,000 on the occasion of a birth ceremony of a son to his daughter but such expenditure was occasion of a birth ceremony of a son to his daughter but such expenditure was not reflected in the books. Addition of Rs. 10,000 on account of unexplained expenditure was accordingly made and confirmed.
Inviting my attention to assessees reply dt. 20th February, 1991 it was submitted on his behalf that the expenditure of Rs. 8 to 10 thousands, as stated by the assessee in his statement recorded on 25th October, 1988 during the course of survey proceedings, was met by all the members of assessees and his brothers, families and, therefore, the entire expenditure should not be charged to assessees account. The learned Departmental Representative on the other hand heavily relied upon assessees statement referred to above and thus supported the order under appeal. I, however, find some force in assessees submission.
(3.) IT is no doubt true that in answer to question No. 22 of his statement recorded on 25th October, 1988 the assessee had stated that an expenditure of Rs. 8 to 10 thousand rupees was incurred on the birth ceremony of his grandson and such expenditure was met out by him. But at the same time it is also a matter of common knowledge that on such an occasion the other members of the family concerned also contribute to the expenditure, though the expenditure is declared to have been incurred by the father of the daughter. Looking to these hard fact and realities of life, I feel inclined to reduce the addition to Rs. 5,000 only. I direct accordingly.;
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