TaxTMI 
TaxTMI 
2017 (6) TMI 330
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....represented on behalf of Revenue. 2. Effective issue raised by assessee in this appeal is that Ld. CIT(A) erred in confirming the order of Assessing Officer (AO) by sustaining the disallowance of Rs. 12,51,660/- on account of peak credit. 3. Briefly stated facts are that assessee is an individual and declared his income under the head "business and income from other source". The assessee was maintaining three bank accounts, wherein the following cash were deposited during the year under consideration:- Bank name & account No. Period Cash IDBI bank A/c No. 72404000000134, 01.04.10 to 31.03.11 46,74,172/- Bank of Baroda A/c No,12400100000552, 01.04.10 to 31.03.11 4,31,000/- Bank of Baroda O/D 12400400010011, 01.04.10 to....
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.... detailed under : a) There was an opening balance of Rs. 10,62,120/- in IDBI bank and the same cannot form part of peak credit; b) There was intra transfer from one bank account to another bank account for Rs. 7 lacs and same cannot be considered while working out the peak credit; c) The income offered by the assessee @ 8% of the total cash deposit is already included in the aforesaid peak credit amount and therefore the same should be reduced from the peak credit; d) The assessee was operating two bank accounts namely, IDBI and Bank of Baroda (OD) account along with his father who is running fair price shop for the distribution of food-grains and kerosene oil. From the IDBI bank account DD worth of Rs. 16,94,03/- were made in conne....
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....le is at fixed price by the Government. (d) Return of income of appellant's father shows net profit of Rs. 1,39,447/- from Brokerage / Commission / Hire job. Turnover details were not furnished to support the claim of cash sales utilized in the deposits in IDBI Account. If turnover of Rs. 23,47,000/- as stated now is considered, then appellants father return of income should have been higher considering purchases of Rs. 16,94,035/- (e) Appellant's evasive reply about nature of business before the AO and even the stated business of fruit & vegetables trading not supporting the transaction with Zydus Wellness Limited and JK Helen Curtis Limited as per bank statement narration further raises doubt about true nature of business. 3. The....
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....s fact was also admitted by the appellant in its submission during the assessment proceedings. Thus, the total cash deposits of Rs. 6,31,00/- treated by the AO as unexplained investment is hereby confirmed. In view of the above findings, the addition of Rs. 30,67,723/- made by the AO u/s 69 of the IT Act is hereby reduced to Rs. 12,51,660/-." Being aggrieved by this order of Ld. CIT(A) assessee came in second appeal before us on the following grounds:- "1. For that, the order of assessment is bad as the assessing officer has not considered the evidence and document submitted by the appellant hence order is against the natural justice as such is liable to set aside. 2. For, that the addition on account of unexplained deposit in ban....
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....her bank account. Similarly the ld. CIT-A has not considered the cash withdrawn and deposit by the father of the assessee. The AR for the assessee has submitted the copies of all the bank statements which are placed on pages 1 to 11 of the paper book and the affidavit of the father of the assessee in support of its contention which is placed on page 16 to 18 of the paper book. The ld. AR also requested to restore the matter to the AO for fresh adjudication after considering all the cash deposit entries in all the bank accounts of the assessee in total as well as after considering the cash entries belonging to his father. On the other hand the ld. DR raised no objection if the matter is restored to the AO for fresh adjudication and relied on....