Question: ![enter image description here](https://i.stack.imgur.com/MW1Mt.jpg)

This problem has bothered me for quite some time and I can't solve it. I have even tried to make a construction, but it sometimes tips to the left and sometimes tips to the right :).

When we submerge the body in the water the water pushes it up. That is an action. At the same time the body pushes water down. That is a reaction. So the balance should be maintained.

But, since the water level rises the hydrostatic pressure on the bottom is greater so the right side should go down.

There is another similar problem but it's not the same. 

Please help.

Answer: 
The balance will be maintained because there is no EXTERNAL force applied on left or right side. This is because of the same reason you can't push a car while sitting in it!
EDIT:
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Since this answer is not being very well received I will just say that *if* we neglect gravitational forces due to the height difference between the mass in the upper and lower pictures; then yes, the scales *will* be balanced as there is simply no net torque. 

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However, since the question did **not** stipulate these assumptions then the answer below is the correct one:

Look at the RHS of the scale and consider Newton's Law of Gravitation $$F=-\frac{G \cdot m\cdot m\_E}{d^2}$$ On the RHS consider $m$ to be the mass of block suspended by the string and $m\_E$ is the mass of the Earth $\approx 6\times 10^{24}$kg. $G$ is the gravitational constant and $d$ is the distance of the string between the block in the top picture and the one in the bottom *plus* the distance to the centre of the earth.

Now let $m\_{s}$ be the mass of the submerged block in the container of the lower RHS and $d\_E$ is the distance to the centre of the earth.
$$F=-\frac{G \cdot m\_{s}\cdot m\_E}{d\_E^2}$$

The gravitational force acting on the RHS of lower system is therefore greater by Newton's inverse square law.

Can you now understand why once the block is dropped into the fluid the RHS of the lower image will weigh more and hence tilt clockwise?