2018 (5) TMI 958

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t year 201-2013 and Rs. 44,66,000/- for the assessment year 2013-14 made by the Assessing Officer towards income from undisclosed sources. 3. The brief facts of the case are that the Assessing Officer observed that the assessee has maintained three bank accounts in his name. The details of credits in the account for the assessment year 2012-13 are as Bank Name/ 4/c No. Cash deposit in Rs. Cheque deposit in Rs. Transfers in Rs. Interest credited in Rs. SBI, Umerkote 11258615760 2,00,000/- 2,51,951/- 68,500/- 588/- ICICI Bank Ltd. 099501500002 1,76,88,034/- 17,34,000/- 1,51,084/- 31,146/- ICICI Bank Ltd. 099501501002 98,31,000/- 4000/- 9,66,160/- 26,028/- 4. Similarly, for the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sit with ICICI Bank A/c No.099501500002 at Rs. 50,00,000/- for the assessment year 2012-13 and Rs. 44,60,000/- for the assessment year 2013-14 and added to the income of the assessee from undisclosed sources and added to the income of the assessee. 6. On appeal, before the CIT(A), the assessee submitted as under: " All the deposits have come out of the earlier withdrawals. It is explained that the cash deposits in SBI account were made out of earlier occasions. This account was a cash credit account having over-drawal power up to Rs. 80,00,000/- and the assesee had withdrawn sufficient amounts on earlier occasions to explain the subsequent cash deposits. The total cash deposits in SBI account amounted to Rs. 12,61,861/- as again....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... to Rs. 44,60,000/-. The total cash withdrawals before that date available with the assessee are found to be much more than the deposit amount. Similar is the situation in case of all the cash deposits. This is evident from the consolidated cash-flow statement and the copies of bank accounts lying on records. In the nature of business of the assessee, cash transactions are rampant and this is evident from the cash transactions in the bank accounts. Moreover, the so-called peak method adopted by the AO to quantify the unexplained deposits is neither logical nor intelligible. There is no justification for such a peculiar method adopted by the AO. In fact, the AO has not understood the peak credit concept at all. He has taken the highest depos....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....it amount. Similar is the situation in case of all the cash deposits. This is evident from the consolidated cash-flow statement and the copies of bank accounts lying on records. In the nature of business of the assessee, cash transactions are rampant and this is evident from the cash transactions in the bank accounts. Moreover, the so-called peak method adopted by the AO to quantify the unexplained deposits is neither logical nor intelligible. There is no justification for such a peculiar method adopted by the AO. In fact, the AO has not understood the peak credit concept at all. He has taken the highest deposit during the relevant previous year in a particular bank account and calculated the sum total of these deposits in all the bank acco....