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TMI Blog1982 (3) TMI 188X X X X Extracts X X X X X X X X Extracts X X X X ..... ring Corporation, Ranchi. He was deriving income from salary and interest. It was found that the assessee encashed 23 high denomination notes of Rupees thousands each from the Reserve Bank of India, Calcutta on 24th January 1978. The assessee's statement was recorded on 15th February 1978. It was stated that the high denomination notes were acquired by the assessee's wife who was saving out of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eted. The AAC was satisfied with the argument of the assessee and he, therefore, deleted the addition. The AAC while deleting the addition observed as follows: "I have examined the contention of the assessee's A.R. Merely because the amount was kept in cash, the ITO was not justified in holding that this was the income of the assessee from undisclosed sources. The appellant is a service-holder an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed nothing. It was but natural that she will save something for the marriage of her daughter. Now, we come to the question whether out of the total earnings of the assessee a sum of Rs. 23,000 can be saved or not. It is a general presumption in the eyes of law that a man can save 1/3rd of his earnings. In the instant case, the assessee had earned total salary of Rs. 2,13,000. He has invested a sum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ead is, therefore, deleted in full." The department is in appeal. 4. Shri Durga Charan, who represented the case of the department, very strongly supported the order of the ITO and urged that the AAC did not have any material to delete the addition of Rs. 23,000 and hence the order of the ITO should be maintained. The counsel of the assessee, Shri Poddar, on the order hand, very strongly supporte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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