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Additions on account of lower withdrawals

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yashdeepk

Chartered Accountant

90 Points Joined August 2011

the AO has made an addition to the returned income on account of lower drawings for household purpose.he has given consideration to societal status and no of dependent family members of assessee.whether addition sustainable in law and whether this can be termed as concealment of income?kindly provide ur valuable opinion plus any reference to case law,if any:D

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Guest

Please specify the amount of drawings, dependents, city of residence etc

Section 69C:Where in any financial year an assessee has incurred any expenditure and he offers no explanation about the source of such expenditure or part thereof, or the explanation, if any, offered by him is not, in the opinion of the Assessing Officer, satisfactory, the amount covered by such expenditure or part thereof, as the case may be, may be deemed to be the income of the assessee for such financial year.