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TMI Blog2012 (11) TMI 418X X X X Extracts X X X X X X X X Extracts X X X X ..... Part-II are on merits and are as under:- "(1) It is submitted by your appellant that during course of assessment proceeding before ITO during proceedings to give effect to the order u/s. 254 of the Act and also before Ld. CIT (A) had filed full facts and figures and evidence in support of claim that construction of House Property Rs.1,05,000/- and deposit of Rs.22,000/- was fully explained and was not liable to be added. It was further submitted that Rs.22,000/- was not liable to be added as cash credit and that Sec. 68/69 does not apply to the facts of the case. (2) It is submitted that your appellant had balance available at opening of the year and had earning of the year available for Cash deposit which has been utilized and therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice was issued by A.O. to assessee to furnish the necessary evidences. With regard to the cash deposit of Rs.22,000/- the assessee did not offer any explanation and according to the A.O., the assessee did not object to the making of addition. The A.O. thus added Rs.22,000/- as income of the assessee. With respect to investment in house property, the assessee interalia submitted that the total cost of the flat was Rs.3.55 lacs. The assessee paid Rs.1.55 lacs out of the receipts from insurance claim, Rs.1 lac was paid was out of the cash deposits. The cash deposit of Rs.1 lac was already added u/s. 69 to the assessee's income for A.Y. 2001-02. He thus submitted that the addition on account of purchase of house property can only be made to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h credit amount to double addition which is against principle of law and justice. The appellant has stated in his above submission that he had enclosed a chart showing income earned by him from A.Y. 2000-01 to A.Y. 2002-03 which shows for that A.Y. 2002-03 by way of business income including income for A.Y. 2001-02 he had Rs.74,651/- as opening balance and also income of assessment year of Rs.61,369/- freely available after meeting expenses. Thus as per the appellant he utilized to pay Rs.1,05,000/- for purchase of flat and deposit of Rs.22,000/- in the bank. But this entire submission of the appellant is not supported by documentary proof. The appellant has shown to have earned income by way of business including income for A.Y. 2001-02. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... explained investment in house property out of undisclosed source of income. Again the A.O. has also made addition of Rs 22,000/- to the total income of the appellant being cash credits in the bank account out of undisclosed source of income. At this place it may be mentioned that the appellant has raised an issue that the deposit in bank does not attract provisions of Section 68 of the I.T. Act in view of accepted principle of accountancy and various judicial pronouncements. In this regard it may be mentioned that the A.O. has not made addition of Rs.22,000/- u/s. 68 of the I.T. Act. The A.O. has made this addition of Rs.22,000/- to the total income of the appellant being the same as cash deposit in the bank account out of undisclosed sourc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e no addition was called for. The Ld. D. R. supported the order of the A.O. 8. We have heard the rival submissions and perused the material on record. From the chart furnished and placed on record it is seen that the total funds available with the assessee was to the extent of Rs.1,16,581/- and the additions made by the A.O. was to the extent of Rs.1,27,000/-. It was also submitted that the assessee had in past received small gifts etc., we are of the view that the addition of Rs.1,27,000/- seems to be on higher side. In view of the totality of facts, we are of the view that in the present case, a disallowance needs to be estimated. In the present case since the assessee had total funds of Rs.1,16,581/- at the end of the year, the disallow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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