Tribunal limits CIT(A) addition to Rs. 1,81,700, accepts Rs. 9,08,300 as house property investment source.

The Tribunal partially allowed the appeal, restricting the addition made by the CIT(A) to Rs. 1,81,700/-, as the correct figure of Rs. 9,08,300/- was accepted as the source of investment in the house property. The Tribunal found the CIT(A)'s decision to be unjustified, considering the appellant's claim of realization from closing stock and debtors. The appellant's balance-sheet was deemed supported by the Tribunal, contrary to the Departmental Representative's argument that it lacked a proper basis.

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Issues:
Challenge to addition made by Assessing Officer regarding unexplained investment in house property.

Analysis:
1. The appellant, an individual engaged in trading of bricks, filed a return of income under section 44AD. The assessment was reopened by the Assessing Officer regarding an investment made in a house property. The Assessing Officer made an addition of Rs. 16,08,333/-, which was later restricted to Rs. 6,00,000/- by the CIT(A). The appellant contested this addition before the Tribunal, focusing on the source of investment and the correctness of the figures considered.

2. The appellant argued that the CIT(A) did not consider the correct details of cash balance, bank balance, and assets. The appellant submitted a balance-sheet showing the sale of closing stock as the source of investment in the house property. The CIT(A) accepted only Rs. 5,00,000/- as realization from the sale of closing stock and debtors, contrary to the appellant's claim of Rs. 11,00,000/-. The appellant contended that the addition sustained by the CIT(A) was unjustified and should be deleted.

3. The Departmental Representative argued that the appellant's balance-sheet was prepared during the appellate proceedings and was not supported by any basis. The DR supported the CIT(A)'s decision to grant a substantial relief and relied on the impugned order. The DR contended that the CIT(A) had made a proper and reasonable decision in restricting the addition.

4. The Tribunal noted that the Assessing Officer had initially considered incorrect figures but the CIT(A) rectified this error. The CIT(A) considered the appellant's claim of realization from closing stock and debtors, estimating it at Rs. 5,00,000/- instead of the claimed Rs. 11,00,000/-. However, the Tribunal found that the correct figure of Rs. 9,08,300/- should have been accepted as the source of investment. Therefore, the addition sustained by the CIT(A) was restricted to Rs. 1,81,700/-, and the appeal was partly allowed.

This detailed analysis of the judgment highlights the issues raised, arguments presented by both parties, and the Tribunal's decision based on the facts and legal provisions involved in the case.

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