  The tunneling spectra obtained within the ab-plane of
Bi$_2$Sr$_2$CaCu$_2$O$_y$ (Bi2212) for temperatures below and above the
critical temperature (T$_c$) are analyzed. We find that the tunneling
conductance spectra for the underdoped compound in the superconducting state do
not follow the conservation of states rule. There is a consistent loss of
states for the underdoped BI2212 implying an underlying depression in the
density of states (DOS) and hence the pseudogap near the Fermi energy (E$_F$).
Such an underlying depression can also explain the peak-dip-hump structure
observed in the spectra. Furthermore, the conservation of states is recovered
and the dip-hump structure disappears after normalizing the low temperature
spectra with that of the normal state. We argue that this is a direct evidence
for the coexistence of a pseudogap with the superconducting gap.
