SH. ANIL VASHIST,NEW DELHI vs. ACIT, NEW DELHI

PER BHAVNESH SAINI, JUDICIAL MEMBER

Page 2 of 5 profit @ 8% on business receipts. During the year, the assessee has gross receipts of Rs.2,31,844/- on which profit have been declared at Rs.54,548/-. In addition to this, the assessee has rental receipt of Rs.4,20,000/- and net job charges of Rs.2,53,107/-. It was, therefore, submitted that these amounts are sufficient to make cash deposits in the bank account. The Ld.CIT(A) considering the explanation of the assessee noted that the assessee has rental receipt, gross receipt from business, job work charges. The Ld.CIT(A) further noted that Rs.1,26,000/- has been spent on interest on borrowed capital and tax paid at Rs.242,430/- is not available to the assessee. Thus, total cash available to the assessee was found in a sum of Rs.7,36,521/-. In the absence of further details, it was presumed that the assessee has utilized approximately Rs.4 lacs for meeting out his various business related expenses and personal expenses including household expenses etc. Therefore, a sum of Rs.3,36,521/- was available to the assessee to make deposit in cash in various bank accounts, therefore, the source of Rs.3,36,521/- was found explained and balance amount of Rs.2,38,479/- remained unexplained, addition of which was confirmed.

Page 3 of 5 reduction u/s 24(a) of the Act and Rs.42,430/- have been deposited as tax on 30.03.2013, therefore, it is available to the assessee. Thus, the counsel for the assessee submitted that a sum of Rs.1,68,430/- is available to the assessee. I find the explanation of the assessee to be correct because Rs.1,26,000/- is not interest as noted by the authorities below and that tax of Rs.42,430/- was not paid in assessment year under appeal. Therefore, these amounts are available to the assessee in cash for the purpose to explain cash deposits in the bank accounts of the assessee. The orders of the authorities below to the extent are modified and the AO is directed to grant further benefit to the assessee in a sum of Rs.1,68,430/- out of the addition of Rs.2,38,479/- maintained by the Ld.CIT(A). The addition shall be reduced to the extent of Rs.1,68,430/-. This ground of appeal of the assessee is allowed partly.

6. On Ground No.3, the assessee challenged the order of Ld.CIT(A) in confirming the addition of Rs.5,30,000/- on account of undisclosed investment. This issue relates to addition of Rs.5,30,000/- on account of undisclosed investment in construction of houses in Dehradun. The assessee was asked to explain source of investment. The details of investment in construction of plot No.56, Dehradun is noted in the orders of authorities below. Ultimately it was found that the assessee has disclosed an investment of Rs.5,30,000/- for purchase of material out of current year income. Since the amount of Rs.5,30,000/- was not Page 4 of 5 explained, therefore, addition to that extent was made. The Ld.CIT(A)

confirmed the addition. The source of the same was not explained.

Page 5 of 5 it would not be available to the assessee for making investment in construction of property. In the absence of any sufficient and cogent evidence available on this issue, I do not find any justification to interfere with the orders of the authorities below, on this ground. This ground of the appeal is dismissed.

The order is pronounced in the open court.