TMI Blog2010 (8) TMI 965X X X X Extracts X X X X X X X X Extracts X X X X ..... upon the assessee to file return of income. The assessee did not file any return of income in response to the same. The notice sent to the assessee was not received back unserved and therefore the Assessing Officer presumed that there was valid service of notice. Thereafter the Assessing Officer completed the assessment u/s. 144 of the Act making an addition of ₹ 24,31,800/- as undisclosed income/cash credit u/s. 68 of the Act. 3. Aggrieved by the aforesaid order, the assessee filed an appeal before the learned CIT(A). Before learned CIT(A), the assessee submitted that Ms. Asma Akil Sarang and the assessee jointly purchased a flat at Kurla for a sum of ₹ 24,31,800/- and in this regard, filed a copy of agreement with M/s. Anik ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s shown income from beauty parlour work at ₹ 1,29,948/- and ₹ 1,55,460/- in A.Y. 20005-06 and 2006- 07 respectively. Ms. Asma A Sarang has shown income of ₹ 1,89,967/- and ₹ 1,53,062/- in A.Y. 2005-06 and 2006-07 respectively. However, the income earned must have been utilized by them for household and other purposes. A perusal of bank statement of the appellant shown that the debit of ₹ 2 lakhs on account of payment by the appellant to Developer on 1.10.2004 was preceded by cash deposits on six dates from 14.9.2004 to 24.9.2004 of ₹ 25,000/-, 40,000/-, 40,000/-, 40,000/-, 30,000/- and 45,000/-. It cannot be accepted that during this small period the appellant earned such cash from the beauty parlour busi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered the issue u/s.69 of the Act. According to the learned counsel for the assessee in exercising of power of enhancement, the learned CIT(A) cannot examine a new source of income, which was not examined by the Assessing Officer. In our view, this objection of the assessee cannot be accepted. The issue before the learned CIT(A) was addition of ₹ 24,31,800/-. As to whether the same is to be examined u/s. 68 or u/s. 69 of the Act was the only issue before learned CIT(A). The learned CIT(A) after noticing factum of investment by the assessee was competent to examine the issue in the light of the provisions of section 69 of the Act. We are of the view that in doing so, the CIT(A) has acted well within his powers under the Act. We therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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