TaxTMI 
TaxTMI 
2017 (3) TMI 796
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....and circumstances of the case, the Learned CIT(Appeals)-I, Rajkot has erred in law and on facts in confirming the action of AO in adding Rs. 8,26,634/- as the income of the assessee by way of peak of cash deposited in bank account. 3. Briefly stated, the assessee filed return of income declaring total income of Rs. 1,93,765/- for the AY 2009-10. Thereafter, the case was subjected to scrutiny assessment under s.143(2) of the Act. It was observed by the Assessing Officer (AO) that the assessee has made cash deposits of Rs. 15,48,800/- in the bank account with People's Cooperative Bank Ltd., Rajkot which was not reflected in his regular books of accounts. The assessee in its reply before the AO submitted that he is carrying on profession as....
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....w. The requisite evidences in support of cash generated by various parties claimed to have been sourced to the assessee has not been adduced. Therefore, the explanation offered by the assessee on part of money sourced out of family funds in cash was not found tenable. However, the AO accepted the plea of the assessee towards peak credit theory. He accordingly made addition of Rs. 8,26,634/- to the total income of the assessee as unexplained deposits as per peak credit theory after granting concessions towards possibility of re-deposits out of earlier withdrawals. Thus, out of total cash deposits of Rs. 15,48,800/-, an amount of Rs. 8,26,634/- was found unexplained by the AO. The CIT(A) revisited the entire factual aspects and found that the....
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.... that the AO ought to have given relief towards cash received from family members while determining the peak credit. The Ld.AR next contended that while computing the peak of Rs. 8,26,634/-, the AO has wrongly taken credits by cheques totalling to Rs. 1,34,308/- which is prima-facie deductible from the amount of aforesaid peak credit. The Ld.AR thereafter relied upon the decision of Hon'ble Gujarat High Court in the case of CIT vs. Ranchhod Jivabhai Nakhava (21 Taxmann.com 159) for the proposition that in the circumstances where the assessee has furnished, the identity and confirmations, the additions towards small cash credits are not warranted. The Ld.AR also relied upon the decision of the Coordinate Bench of Tribunal in the case of Sanj....
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.... that the assessee is in practice for long does not cut ice. The assessee being a professional and an educated person is expected to explain the cash deposits meticulously. The assessee has miserably failed in doing so and is seeking to take refuge of generic and bald possibilities. The whole explanation is completely bizarre and is tainted with conjectures. One can see through the listless explanation that the cash was accumulated over years and waked up to deposit the same in this year not by the assessee but by wife and other relatives in tandem via the undisclosed bank account of assessee. The whole explanation is sordid and marred with obscurity. The need to deposit the cash of other person in the bank account of assessee by passing th....