TMI Blog2012 (8) TMI 765X X X X Extracts X X X X X X X X Extracts X X X X ..... d credited to the bank account. In the interest of justice, we remit this matter to the file of the AO for deciding the issue de-novo - ITA No. 1580/HYD/2011 - - - Dated:- 8-6-2012 - SHRI CHANDRA POOJARI, AND SMT. ASHA VIJAYARAGHAVAN, JJ. Appellant by : Mr. B.R. Mahesh Respondent by : Mr. B.V. Prasad Reddy ORDER PER ASHA VIJAYARAGHAVAN, J.M.: This appeal filed by the assessee is directed against the order of the CIT(A)-IV, Hyderabad dated 30/06/2011 for the assessment year 2008-09. 2. In the course of assessment proceedings, it was noticed by the assessing officer that during the year the Assessee had claimed interest on housing loan limited to Rs 415,141/- in respect of self occupied property. However as per the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e place and advances were refunded back to the parties. However the assessee has not maintained any documentary evidence for the said transactions. With a view to buy mental peace and maintain cordial relation with the department the assessee voluntarily agrees for an addition of Rs 8,00,000/- on this count. 6. The Assessee also filed a letter dated 23.11.2010 enclosing the bank account extract. It was claimed therein that the cash deposit of Rs 3 lakhs on 20.6.2007 had been made out of cash withdrawal of Rs 2 lacs on 22.5.2007 and of Rs 1 lac on 16.6.2007. Besides Rs4,50,000/- was also claimed as deposited out of accumulated agricultural income from 6.17 acres of agricultural land held by his HUF. A copy of the return of income or the AY ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submissions, wherein it was explained that the Assessee had taken loan for acquiring house property income and he was claiming the deduction from year to year. In this regard he submitted the certificate issued by the bank. 10. With regard to the unexplained investment, he argued that since the Assessee is not a business man, no books of accounts were maintained. He further averred that the courts have held that mere credits in the bank statement shall not be treated as the income of the assessee more so considering the fiduciary relationship between the customer and banker. 11. With regard to the cash deposits of Rs 16,35,000/- the representative of the Assessee reiterated the contentions regarding deposits made out of withdrawals and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sri Raja and not by the Assessee. The Assessee could not explain the reason for such withdrawal by Sri Raja or his relationship with the Assessee. As regards the withdrawal of Rs 2 lacs on 22.5.2007 the same had been given credit while working out the peak credits. A copy of the working was also enclosed to the report submitting that the peak credit comes to Rs 14,35,000/- as against Rs 13,15,000/- considered in the assessment order. Accordingly the assessing officer requested for enhancement of the addition on account of unexplained credits in the bank account to Rs 21,59,631/- as against Rs 20,9,631/- made in the asst. order. It was averred that the Assessee had failed to explain the sources of the cash deposits. 14. With regard to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orrect tax calculation. 17. After considering the submissions of the assessee and the remand report obtained from AO, the CIT(A) held as under: I have gone through the facts of the case and the submissions of the Appellant. So far as the interest on mortgage loan is concerned it is clear that even though any interest paid towards borrowed capital is to be allowed as deduction under sec 24(b) such borrowings has to be for the purpose of acquisition, construction, repairs, renewal or reconstruction of the property. In the instant case the purpose of mortgaging the house and the user of the borrowed capital could never be substantiated by the Assessee. Accordingly finding no infirmity in the action of the assessing officer the disallowanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e deposits in the bank account. 19. We have heard the arguments of both the parties and perused the record as well as gone through the orders of the authorities below. As regards interest payable on borrowings in respect of let out properties, the interest will be allowable only if the loan is taken for the acquisition of the house or for repaying a loan taken for acquisition of the property. In the remand report, the Assessing Officer has stated that Rs. 76,756/- was paid towards Mortgage loan. The assessee has not produced any evidence to show that the loan has been taken for acquisition of property. Therefore, we confirm the order of CIT(A) and dismiss the ground raised on this issue. 20. As regards the addition on account of credit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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