TaxTMI 
TaxTMI 
2012 (5) TMI 801
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....t the assessee credited a sum of Rs. 34,000 to his capital account by giving narration as "Agricultural income". However in the return of income, net agricultural income was shown only at Rs. 15,000. As the assessee could not submit any explanation about the source of the remaining amount of Rs. 19,000, the Assessing Officer made addition for the said sum. However, the claim regarding of agricultural income of Rs. 15,000 was accepted by including such amount in the total income only for rate purposes. The learned CIT(A) upheld the addition at Rs. 34,000. 3. Having heard the rival submissions and perused the relevant material on record it is observed that the assessee failed to lead any evidence regarding the remaining amount of Rs. 19,00....
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....ls for meeting personal and household expenses and also the composition of family members. No reply was furnished for a long time against the reminder so issued. The assessee's counsel vide letter dated 23.12.1999 did not offer any explanation except filing details and break up of personal withdrawal. From this statement it was observed by the A.O. that the total withdrawals were to the tune of Rs. 7.31 lakh. As against that the amount of income-tax paid and LIP payment were Rs. 7.21 lakh thereby leaving balance of Rs. 9,800 available for household expenses. The Assessing Officer required the assessee to justify such a paltry sum towards household expenses. It was also observed that the family of assessee consisted of self, his wife, his so....
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.... the Assessing Officer was quite reasonable in making addition of Rs. 2 lakh towards insufficient household withdrawals, which has been rightly sustained in the first appeal. This ground is not allowed. 6. Ground no.3 is against the confirmation of addition of Rs. 5,00,000. The facts of this ground are that the assessee deposited a sum of Rs. 5 lakh in his bank account by cash on 27.06.1996. On being called upon to furnish the source of this amount, the assessee stated that a sum of Rs. 5 lakh was taken as loan from bank which was shown as withdrawn on 02.03.1996 and the same amount was deposited on 27.06.1996. The Assessing Officer doubted the assessee's contention by mentioning that : "it needs verification with reference to reliable d....
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....g the utilization of the amount so withdrawn elsewhere. If the utilization of the amount is not proved then the contention of the assessee cannot be rejected. In the present case the assessee's contention about the redeposit of sum of Rs. 5 lakh at a gap of around three months has remained uncontroverted by the Assessing Officer. In our considered opinion, there is no basis whatsoever to make or sustain any addition in this regard. We, therefore, allow this ground. 8. Ground no.4 is against the confirmation of addition of Rs. 56,606. The facts apropos this ground are that the assessee paid bank interest of Rs. 56,606. The A.O. observed that this amount remained unaccounted for. Further since such loan was not utilized for the business of....