2013 (5) TMI 299

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.... the sake of convenience. 2. At the outset, the learned AR submitted that on the instructions of his client, he wants to withdraw the appeals filed by the assessee in ITA Nos.1815 and 1816/Hyd/2011 pertaining to the assessment years 2008-09 and 2009-10. In view of the aforesaid submissions of the learned AR, ITA Nos. 1815 and 1816/Hyd/2011 are dismissed as withdrawn. Thus, we are only left with ITA No.1814/Hyd/2011. 3. The only issue arising in this appeal is with regard to addition of an amount of Rs.2,45,641/- on account of peak credit balance. Briefly the facts relating to this issue in dispute are, the assessee is an individual. For the assessment year under dispute, the assessee filed its return of income on 4-2-2004 declaring a ....

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.... Rs.90,47,561/-. 4. The Assessing Officer not being convinced with the explanation of the assessee asked the assessee to prepare cumulative cash flow statement. The cumulative cash flow statement submitted by the assessee showed peak negative cash balance of Rs.95,90,557/-. The Assessing Officer on examining the cash flow statement found that while working out the negative credit, the assessee has considered only the cash component of 27 bank accounts not disclosed by the assessee and found during the course of search. The Assessing Officer was of the view that the peak credit has to be arrived by taking all bank transactions and not just cash transaction. Considering the fact that all the bank accounts are not disclosed to the departmen....

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....e working out the peak credit, the CIT (A) did not accept it by observing that the assessee himself had considered all 27 accounts for working peak negative cash balance. The CIT (A) further held that since the Assessing Officer after arriving at the peak credit has reduced the income already disclosed by the assessee, it cannot be said that the income already computed considering the three bank accounts is taxed again. On the aforesaid conclusion, the CIT (A) sustained the addition made by the Assessing Officer. 6. We have heard the submissions of the parties and perused the material on record. It is the contention of the learned AR that three of the bank accounts already disclosed to the department have again been considered for workin....