Allowing the appeal of the assessee the Court held that; the addition of Rs. 18,30,000 made by the Assessing Officer on account of unexplained expenditure was made in the assessment year 2006-07. Simply by saying that this was a bogus liability for the assessment year 2006-07 which was cleared in the assessment year 2007-08, and that it must have been repaid out of unrecorded sources was only a presumption without any evidence brought on record to that effect. The addition was not justified. (AY.2007 -08)