TaxTMI 
TaxTMI 
2014 (6) TMI 804
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....unt of the assessee as unexplained income u/s 69 of the Act. 2. The facts relating to the above said issue are stated in brief. The assessee runs two jewellery shops. Besides the above, the assessee was also declaring income from job works undertaken for jewellery manufacturing. As per the Annual Information Return, it was noticed by the assessing officer that the assessee has deposited an aggregate amount of Rs.19.63 lakhs in a SB account maintained with South Indian bank Ltd. The assessee explained that (a) he had declared a sum of Rs.11.00 lakhs as his income since AY 1996-97 and further a sum of Rs.5.53 lakhs in the form of gold jewellery was declared under VDIS scheme. (b) he has won Kuri amount to the tune of Rs.4.80 lakhs du....
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....DIS scheme were used for making the impugned deposits by bringing any books of account on record. Accordingly, the Ld CIT(A) upheld the addition made by the assessing officer. Aggrieved, the assessee has filed this appeal before us. 4. The Ld Counsel appearing for the assessee reiterated the contentions made before the assessing officer. He submitted that the assessee has deposited the kuri receipts aggregating to Rs.4,80,000/- into the very same bank account on 26.05.2003 and the bank balance as on that date stood at Rs.4,84,771/-. The assessee has withdrawn the said amount on various dates during the course of year. In the mean time, he also redeposited the same during the course of financial year 2003-04, i.e., in the immediately prec....
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....used for making future deposits. Accordingly, the assessing officer has computed peak credit of the bank account and determined that the balance available in the bank account as on 09.11.2004, i.e. Rs.12,73,150/- is the peak amount and assessed the same. It is pertinent to note that the aggregate amount of deposits made in the bank account was Rs.19,63,000/-. As against this amount the assessing officer has assessed only the peak credit amount. 7. We notice that the assessing officer has computed the peak credit amount by considering the bank account from 1.4.2004 to 31.3.2005 only. The contention of the assessee is that the amount withdrawn from the very same bank account in the immediately preceding year, i.e., in financial year 2003-0....
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....s been declaring income from job works over the years and it is stated that the assessee has not maintained regular books of account for this business. The possibility of making savings out of job works business cannot be altogether ruled out. In this kind of circumstances, particularly when evidences are not available to substantiate the claim put forth by the assessee, the courts have applied the test of human probabilities to decide the issue before it. The very fact that the assessing officer has assessed the "peak credit amount" shows that he has also accepted the theory of human probabilities, i.e., the assessing officer has accepted the fact that the past withdrawals were utilised to make future deposits, which is a normal human beha....