TMI Blog1980 (10) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... in view the total investment of Rs. 45,753 made by the assessee during this year, the ITO estimated the income from profession at Rs. 40,000. The assessee filed an appeal to the AAC and pleaded that he was practising in a small place like, Manglore and, therefore, the estimate of income as high as Rs. 40,000 was not warranted. He had also explained that for the purpose of making the investment of Rs. 45,753, he had withdrawn Rs. 32,000 from the Cooperative Bank, Roorkee, and the balance amount could easily come from his income during this year. It was also submitted that his household expenditure of car, L.I.P., and taxes was also duly accounted for. It was also submitted that when he himself revised his return declaring an additional inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leaded that the ITO wrongly took only Rs. 10,800 as withdrawals from the bank, as against Rs. 32,000 being the actual withdrawal. He submitted that the estimate of income shown at Rs. 29,000 was reasonable and should have been accepted. Lld. Deptl. Rep. relied on the orders of the authorities below. 3. In our opinion, the estimate of the assessee s income at Rs. 40,000 is not at all excessive or unreasonable. As we will discuss it hereinafter, we are not accepting the loan of Rs. 10,000 from Shiv Dayal as genuine loan. Thus, if Rs. 10,000 is added to Rs. 29,000 shown by the assessee himself, the total will be Rs. 39,000. Keeping in view this figure alone, the estimate of income at Rs. 40,000 is reasonable. 4. The next ground relates to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dy been increased by a similar amount. The assessee will thus be entitled to a reduction of Rs. 10,000. 5. The third ground relates to the estimate of income from residential property. We were told that up to the asst. yr. 1972-73, the income from the residential property was taken at Rs. 600, but in the asst. yr. 1974-75 it was increased to Rs. 1200 and in this year by taking the annual letting value at Rs. 7200, the net income was determined at Rs. 4155. On appeal, the AAC directed that the net income should be taken at Rs. 2500. We enquired about the area of the property and we were told that the built-up area was 2772 sq. ft. We also enquired about the cost of construction and we were told that when the property was constructed, the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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