Tribunal sets aside orders on bank accounts consolidation, directs peak credit recalculation. Revenue and Assessee appeals allowed.

The Tribunal set aside the orders of the AO and CIT(A) for not following its direction to consolidate all bank accounts for peak credit determination. The proper method was deemed to be recalculating the peak credit of the consolidated bank accounts. Both the Revenue and Assessee's appeals were allowed for statistical purposes. (Judgment Date: 09.05.2012)

---

---

Issues involved: Cross appeals by Revenue and Assessee against order of CIT(A)-Central-I, Kolkata for A.Yr. 2005-06.

Revenue's Grounds (ITA No.141/Kol/2012):
- Benefit of Peak credit allowed without explanation on fund recycling.
- Discrepancy in peak credit calculation by CIT(A) and AO.
- Request for altering grounds.

Assessee's Grounds (ITA No.27/Kol/2012):
- Challenge to CIT(A)'s order.
- Consolidated peak credit should be considered.
- Request for adding or amending grounds.

Facts:
- Cash seized led to scrutiny assessment.
- Six bank accounts investigated post seizure.
- Assessee claimed cash from clients for investments.
- AO treated total deposits in bank accounts as undisclosed income.
- CIT(A) directed treating peak credit of bank accounts as undisclosed income.
- Tribunal set aside orders for lack of investigation into debit side.

Tribunal's Decision:
- Neither AO nor CIT(A) followed Tribunal's direction.
- Proper method is to consolidate all bank accounts for peak credit determination.
- Orders set aside for recalculating peak credit of consolidated bank accounts.
- Appeal of Revenue and Assessee allowed for statistical purposes.

Judgment Date: 09.05.2012.

---