https://www.taxtmi.com/caselaws?id=754082 The ITAT Delhi held that cash deposits in an assessee's bank accounts, where no explanation was provided for the difference between bank credits and purchases, should be treated as business income rather than unexplained credits under Section 68. The assessee purchased PVC and iron scrap through cheques and sold them for cash in the Kabadi Market. Since the assessee filed returns under Section 44AD without maintaining books of accounts, and had no income source other than business and capital gains, the tribunal inferred the cash deposits were from business receipts. Applying the peak theory principle, the addition was restricted to Rs. 9,70,000 representing the peak cash deposit across both accounts, rather than taxing the entire deposit amount. en-us Fri, 14 Jun 2024 00:00:00 +0530 Mon, 17 Jun 2024 08:45:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754082 The ITAT Delhi held that cash deposits in an assessee's bank accounts, where no explanation was provided for the difference between bank credits and purchases, should be treated as business income rather than unexplained credits under Section 68. The assessee purchased PVC and iron scrap through cheques and sold them for cash in the Kabadi Market. Since the assessee filed returns under Section 44AD without maintaining books of accounts, and had no income source other than business and capital gains, the tribunal inferred the cash deposits were from business receipts. Applying the peak theory principle, the addition was restricted to Rs. 9,70,000 representing the peak cash deposit across both accounts, rather than taxing the entire deposit amount. Case-Laws Income Tax Fri, 14 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754082