2016 (3) TMI 961

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....& 15.01.2010 for Assessment Year 2007-08. ITA No. 830/Ahd/2010 & CO No. 106/Ahd/2010 : Assessee- Shri Tikamchand Mutha 2. In this Revenue's appeal, the original grounds raised by the Revenue read as under:- 1. The ld. CIT(A) is erred in law and on facts in restricted addition of Rs. 43,73,860/-made on account of unexplained cash deposits in the bank account by adopting peak cash deposits (on 60 days basis) and directing that peak investment deposit only should be brought to tax, as unexplained investment. 2. The Ld. CIT (A) has failed to appreciate that there is no presumption in law that peak cash deposits only should be assessed, the onus is on the assessee / persons making the claim that such advances given earlier have been recei....

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....as erred in law and on facts in confirming the addition on account of cash credit of Rs. 7,55,000/-. 3. Under the facts and circumstances of the respondent and considering the legal decisions, the Ld. CIT Appeals ought to have deleted the said addition also and should have accepted the Returned Income. It be so held now. 4. The respondent craves leave to add, alter, amend or withdraw any of the grounds of cross objection on or before of the final hearing of appeal. 3. The brief facts of the case are that the assessee is an individual, deriving income from commission and interest. For the year under consideration, the assessee filed return of income on 13.07.2007 declaring total income at Rs. 1,02,370/-. During the assessment proceeding....

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....d addition of Rs. 27,02,980/- made on account of unexplained cash deposits in the bank account by adopting peak cash deposits (on 60 days basis) and directing that peak investment deposit only should be brought to tax, as unexplained investment. The Departmental Representative further submitted that the CIT (A) has failed to appreciate that there was no presumption in law that peak cash deposits only should be assessed, the onus is on the assessee / persons making the claim that such advances given earlier have been received back. In the absence of such claim, the entire cash deposit has to be assessed as unexplained investment. He further contended that the CIT(A) was not correct in directing to adopt only the peak deposit in the bank acco....

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....n this regard, from the copy of the bank account of Punjab National Bank, CIT(A) found that various cheques had been issued immediately after the cash amount were deposited in this account. For this, the father of the assessee Shri Sureshchand Mutha has stated before the CIT(A) on 11.01.2010 that most of those cheques were issued in favour of UT Motors - a concern of the assessee, giving loan to the needy persons for buying CNG auto kits for 2 to 4 months @ 12% to 15%. In this regard, the CIT(A) observed that even if it was accepted that peak theory would be valid in this case, because the assessee was in the business of financing; the day to day peak could not be applied in the present case because as admitted by the father of the assessee....