Appeals challenging Income Tax Act orders for assessment years dismissed, peak credits upheld.

The High Court dismissed the appeals challenging orders under Section 260-A of the Income Tax Act for assessment years 2007-08 and 2008-09. The court upheld the Income Tax Appellate Tribunal's decision to sustain additions to income based on peak credits in bank accounts. The court also agreed with the authorities that the construction of a building did not equate to cash investments and that disputed jewelry additions were factual issues not suitable for appeal. The court found no merit in the assessee's contentions, affirming the lower authorities' decisions.

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Issues involved:
The judgment involves challenges to orders passed by the Income Tax Appellate Tribunal under Section 260-A of the Income Tax Act, 1961 for two appeals relating to assessment years 2007-08 and 2008-09.

Issue 1: Peak credits in bank pass book
The Assessing Officer concluded that the assessee had willfully concealed income, making additions to income from other sources. The 1st Appellate Authority directed the Assessing Officer to determine peak credit for bank accounts. The Income Tax Appellate Tribunal (ITAT) accepted the assessee's plea to only sustain additions to the extent of peak credit in bank accounts. The assessee contended that bank pass books are not 'books of account' and Section 68 of the Act does not apply. As the assessee did not provide evidence to explain cash deposits and withdrawals, and accepted that peak credit additions should be sustained, the appeal was dismissed.

Issue 2: Construction of building vs. investment made in cash
The assessee claimed that the amount spent on construction of a building was the same as the investment made in cash, which was not accepted by the authorities or the Tribunal. The Tribunal's finding that these amounts cannot be considered the same was upheld. It was deemed a question of fact not suitable for appeal.

Issue 3: Additions on account of jewelry found during search
The assessee disputed additions made for jewelry found during search based on invoices he disowned. This was deemed a question of fact not suitable for appeal.

In conclusion, the High Court dismissed the appeals as it found no merit in the contentions raised by the assessee, upholding the decisions made by the lower authorities and the ITAT.

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