TaxTMI 
TaxTMI 
2012 (8) TMI 765
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....n limited to Rs 415,141/- in respect of self occupied property. However as per the proviso to sec 24(b) the amount of deduction in respect of self occupied property should not exceed Rs 1,50,000/- Therefore the assessing officer disallowed the excess interest claim of Rs 2,65,141/-. 3. The Assessee had claimed a further amount of Rs. 76,756/- being interest payable on borrowings in respect of the house at JR House Road No.2, Banjara Hills, Hyderabad. The Assessee was required to furnish proof of claim of interest on borrowed capital in respect of the house properties let out. However the Assessee failed to furnish the same before the assessing officer. In the absence of any supporting evidence the assessing officer disallowed the entire ....
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....7 acres of agricultural land held by his HUF. A copy of the return of income or the AY 2002-03 was also filed wherein agricultural income had been admitted. It was claimed that since the Assessee is having agricultural income only the same being exempt no returns were filed in subsequent years. 7. On going through the bank account extract however the assessing officer noticed that the withdrawals mentioned above had been made by way of bearer cheques by a third person. He accordingly did not considered the said withdrawals for telescoping though the withdrawals of Rs 2 lacs, Rs 50,000/- and Rs 70,000/- on 22.5.2007, 5.10.2007 and 25.10.2007 through bearer cheques by the Assessee himself were allowed for telescoping. With regard to the cl....
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....e of the Assessee reiterated the contentions regarding deposits made out of withdrawals and agricultural income as discussed above. He averred that the assessing officer accepted the telescoping of a sum of Rs 3,20,000/- towards unexplained cash deposits and that of Rs 90,000/- towards agricultural income. Therefore he claimed that the unexplained cash credits should have been Rs 12,25,000/- only and not Rs 20,39,631/- with regard to the balance cash deposits of Rs 12,25,000/- he reiterated that the same were made out of advances received for the sale of non agricultural lands, besides income from agriculture. However he considered that in the absence of evidence the farmers the Assessee had voluntarily accepted an addition of Rs 8 lacs bas....
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....at the Assessee had failed to explain the sources of the cash deposits. 14. With regard to the claim of the Assessee that cheques credited into the bank account were on account of rental income the assessing officer submitted that the rental income credited in the bank account by the IDBI Bank had not been taken into consideration for addition and the addition was made after excluding the rental income credited at the head office of the HDFC Bank. A working of the unexplained credits was also enclosed. 15. A copy of the remand report of the assessing officer had been forwarded to the Assessee for his comments/objections. With regard to the report of the assessing officer regarding interest of Rs 76,756/- considered not allowable as it....
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....e Assessee. Accordingly finding no infirmity in the action of the assessing officer the disallowance of Rs 76,756/- is upheld and ground no. 2 is decided against the Assessee. So far as the addition on account of unexplained credits in the bank account is concerned it is seen from the working of unexplained credits submitted by the assessing officer that the cheque credits shown therein have indeed not been considered for working out the unexplained credits. On the other hand there is no doubt that the Assessee has not been able to explain the unexplained credits in the bank account of Rs 21,59,631/- Accordingly finding no infirmity in the action of the Assessing Officer the addition on account of unexplained credits in the bank account is ....