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2022 (7) TMI 1299 - AT - Income TaxAdditions towards unexplained investment in land - as per assessee sources for the same is out of earlier period savings in salary derived from Yugaandhar Housing Private Limited and also current year salary - HELD THAT:- Admitted facts are that the assessee’s sources of income from salary Rs. 18 lakhs was not disputed by the AO and the Ld. AO has considered Rs. 13 lakhs as surplus available for investment made by the assessee. It is observed that the AO has not given any credit for the savings made by the assessee out of the salary income earned during the earlier years. We find merit in the argument of the AR that the amount is met out of the own savings of the assessee and cannot be treated as unexplained investment. AO has merely stated that the savings from salary earned in the previous years is not acceptable and hence could not be treated as investment in the immovable properties. AO has considered a surplus balance available with the assessee Rs. 13 lakhs out of the salary income of Rs. 18 lakhs earned during the current Financial Year but has failed to appreciate the fact that the similar savings shall be available with the assessee for the earlier assessment years. We are of the considered view that the mere assumption of the AO that the assessee was not having sufficient accumulated cash balances out of the salary income earned during the earlier years is not acceptable and therefore we hereby quash the orders of the Ld. Revenue Authorities and allow the appeal of the assessee.
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