BUDH KISHORE Vs. JOINT COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THESE two appeals have been filed by the assessee under s. 260A of the IT Act, 1961 (for short "the Act"), against the

(2.) THE assessee is aggrieved by the findings of the Tribunal that the household expenses of the assessee to the extent of Rs. 96,400 and Rs. 84,000 for the asst. yrs. 1994 -95 and 1995 -96, respectively, had remained unexplained and thereby upholding the addition to that extent in the total income of the assessee.

(3.) DURING the course of assessment proceedings for the asst. yr. 1994 -95, the AO observed that the assessee had not disclosed any withdrawals for household expenses and that the relevant columns in the net wealth statement had been left blank. Keeping in view the size of the family of the assessee and standard of living, he estimated the expenses of the family at Rs. 10,000 per month totalling Rs. 1,20,000 for the entire year. Since the assessee had not accounted for this amount, he treated the same as having been incurred out of undisclosed sources and thereby made an addition of Rs. 1,20,000 to the income of the assessee.