Tribunal limits unaccounted income addition, dismisses expense disallowance, upholds cash credit addition.

The Tribunal partially allowed the appeal regarding the addition of alleged unaccounted income, limiting the addition to Rs. 91,600. The appeal on the disallowance of various expenses amounting to Rs. 18,078 was dismissed as not pressed. The appeal challenging the addition of alleged unexplained cash credit of Rs. 2,00,000 was dismissed, upholding the addition due to the husband's inadequate income to justify the loan.

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Issues:
1. Addition of alleged unaccounted income.
2. Disallowance of various expenses.
3. Addition of alleged unexplained cash credit under section 68 of the Act.

Issue 1: Addition of Alleged Unaccounted Income:
The appeal was against the addition of Rs. 14,76,614 on account of alleged unaccounted income for the Assessment Year 2008-09. The Assessee argued that the bank deposits were related to business trading not reflected in her books of accounts. The CIT (A) held that the deposits were unexplained as the appellant failed to provide evidence linking the transactions to her business. The Tribunal observed that the bank account showed transactions of cash and cheques, indicating unrecorded business activities. It directed the AO to consider 5% net profit on total deposits of Rs. 18,32,079, limiting the addition to Rs. 91,600, partially allowing this ground of appeal.

Issue 2: Disallowance of Various Expenses:
Ground no. 2 regarding the disallowance of expenses amounting to Rs. 18,078 was not pressed by the Assessee's counsel during the hearing, leading to its dismissal as not pressed.

Issue 3: Addition of Alleged Unexplained Cash Credit:
The addition of Rs. 2,00,000 on account of alleged unexplained cash credit under section 68 of the Act was challenged. The loan received by the Assessee from her husband was questioned by the AO due to discrepancies in the husband's income and capacity to provide the loan. The CIT (A) upheld the addition, stating that the Assessee failed to prove the creditworthiness despite providing documents. The Tribunal concurred with the CIT (A), citing the husband's inadequate income to justify the loan, and dismissed the ground of appeal, upholding the addition.

In conclusion, the Tribunal partially allowed the appeal concerning the addition of unaccounted income while dismissing the appeal related to unexplained cash credit. The disallowance of various expenses was also upheld due to non-presentation during the hearing.

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