CIT Vs. MINOR R. GANESH

JUDGEMENT

(1.) The above appeal is filed as against the order dated 22 -5 -2003 of the Tribunal, C Bench, Chennai.

(2.) THE respondent, who is an assessee, is an individual engaged in the business of plying of buses. For the assessment year 1990 -91, the assessee/respondent filed his return of income admitting a total income of Rs. 1,08,900. The return was processed and the assessee/respondent was asked to reconcile the opening capital of Rs. 1,53,033.25 with the closing balance as on 31 -3 -1987. The representative of the assessee/respondent has filed a reconciliation statement, but however, the assessing officer found the same as erroneous. Since the assessee/respondent has not filed cash flow statement, the assessing officer himself has prepared a cash flow statement for the period from 1 -4 -1987 to 31 -3 -1990, and called upon the assessee/respondent to file his objections, if any. Thereafter, the assessing officer has made an addition of Rs. 2,40,725.37 towards the drawings for personal expenses and found that the source was not satisfactorily explained and the same was brought to assessment under section 69C of the Income Tax Act.

(3.) THE above appeal is filed by raising a substantial question of law which is set out as hereunder : 'Whether, in the facts and circumstances of the case, the Tribunal was right in deleting the additions made for unexplained accretion to capital account and drawings on the ground that cash represented by depreciation claimed being notional allowance was available for explaining the increase in capital account balance ?'