Delhi HC assesses ITAT's bank deposits restriction, limits addition based on peak credit theory

The Delhi HC admitted the case to determine if the ITAT's restriction on unexplained deposits in the assessee's bank accounts was correct. The addition was limited to Rs. 5,87,374 instead of Rs. 72,08,996 based on the peak credit theory. The respondent agreed to file the necessary documents within three months.

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The Delhi High Court admitted the case for consideration of whether the Income Tax Appellate Tribunal correctly restricted the addition on unexplained deposits in the bank accounts of the assessee to Rs. 5,87,374 instead of Rs. 72,08,996 based on peak credit theory. The respondent agreed to file the paper books within three months as per rules.

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