1996 (2) TMI 555

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....T By the Court.-This is a reference under s. 256(2) of the IT Act, 1961 at the instance of assessee and on that basis, this Court called reference from Tribunal and the following question of law has been referred for answer by this Court: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the benefit of peak credit could not be granted to ....

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....s have been shown as received and the dates on which the amounts have been shown as paid out are as under : Credit amount Date Debit amount Date 10,000 20-01-1977 10.000 21-1-1977 11,000 21-01-1977 11,000 27-1-1977 20,000 11-03-1977 20,000 16-3-1977 5,000 03-05-1977 5,000 4-5-1977 3,000 09-11-1977 3,000 2-11-1977 59,000 ....

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.... was responsible to explain as to who brought the money and when and also on whose behalf. In the absence of cogent explanation, the ITO totalled a sum of deposition in regard to Haste Khate to be the assessee's income from the year of account from the sources not disclosed to the IT Department. Therefore, this amount was added to income and the assessee was taxed. Against this order of the IT....

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....ce to the question that it was to be taken as a peak credit. We fail to understand the theory of peak credit being used in this set of affairs when it is more than apparent that why the assessee-firm deposited sum of Rs. 10,000 on 20th Jan., 1977, and withdrawn it on 21st Jan., 1977, deposited sum of Rs. 11,000 on 21st Jan., 1977, and withdrawn on 27th Jan., 1977; deposited sum of Rs. 20,000 on 11....