ITAT Upholds CIT(A)'s Decision to Assess Peak Cash Deposits for 2008-2009, Dismissing Revenue's Appeal on Unaccounted Income

The ITAT dismissed the Revenue's appeal against the CIT(A)'s order for the 2008-2009 assessment year, which involved the addition of unaccounted income in an undisclosed bank account. The ITAT upheld the CIT(A)'s decision to assess only the peak amount of cash deposits, finding the calculation appropriate and without error. The Revenue's argument against allowing peak credit benefit was rejected, affirming the CIT(A)'s order. The decision was pronounced in Open Court.

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Issues involved: Appeal by Revenue against CIT(A) order for assessment year 2008-2009 regarding addition of unaccounted income deposited in undisclosed bank account.

Summary:
The Revenue's appeal challenged the CIT(A)'s decision to restrict the addition of unaccounted income deposited in an undisclosed bank account. The Revenue argued that the assessee failed to prove that cash deposits were received back and available for re-deposits, thus peak credit benefit should not be allowed. The assessee contended that the CIT(A)'s order was well-reasoned, citing a similar case where only the peak amount of cash deposits was assessed. After considering the submissions and relevant precedents, the ITAT upheld the CIT(A)'s decision. The ITAT found that the CIT(A) correctly confirmed the addition of the peak amount of deposits in the assessee's bank account, as the funds were circulated through withdrawals and deposits. The ITAT noted that the peak amount calculation by the CIT(A) was appropriate, and there was no evidence to suggest any error in the assessment. Therefore, the ITAT dismissed the Revenue's appeal, affirming the CIT(A)'s order to assess the peak amount of credit in the bank account of the assessee.

The appeal of the Revenue was dismissed, and the order was pronounced in Open Court as per the mentioned date.

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