TaxTMI 
TaxTMI 
2018 (7) TMI 872
X X X X Extracts X X X X
X X X X Extracts X X X X
....orting the order of the Ld.CIT(A). 2. All the grounds of appeal raised by the revenue are on two issues i.e. addition made towards unexplained sources for peak credits in ICICI Bank Account but not disclosed in the books of accounts amounting to Rs. 50,89,252/- and Gross profit addition of Rs. 24,49,962/-. During the assessment proceedings, the A.O. found that the assessee has made the cash deposits in ICICI Bank account bearing No.030301000019 but not disclosed the transactions in the regular books of accounts. The A.O. worked out the peak credits in the bank account at Rs. 50,89,252/- and assessed the same as income under the head "unexplained sources". 3. Aggrieved by the order of the A.O., the assessee went on appeal before the CIT(A....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ot belong to the him, the Ld. A.R. submitted that for making the addition representing peak credit balance the same should be worked out correctly taking into account of all the credits and the debits in the bank account but not the cash deposits and withdrawal alone. In nutshell the assessee submitted that withdrawals by cheque also should be considered as source for redeposit. The Ld.AR further submitted that the peak credit balance after taking into account of all the debits and credits was worked to Rs. 5.00 lakhs which was upheld by the Ld.CIT(A) and no interference is called for in the order of the Ld. CIT(A). 6. We have heard both the parties, perused the materials available on record and gone through the orders of the authorities b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eques in the names of various parties were accounted in the regular books of accounts. Since the assessee failed to establish that withdrawals made by cheques in the name of third parties were brought back to the account, contention of the Ld. A.R., for arriving the peak credit balance the entire debits and credits required to be considered is untenable. In the absence of any evidence to show that payments made to third parties were brought back to the undisclosed account and the resultant cash was circulated, only the cash withdrawals cash deposits and unexplained credits should be considered for arriving the peak credit balance. 6.2 There is no dispute that the peak credit of the undisclosed bank account required to be brought to tax. Th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....credit balance correctly we consider it is not necessary to adjudicate cross objection separately. Accordingly, the cross objection stands allowed for statistical purposes. 8. The next issue in this case is estimation of gross profit on unaccounted purchases. The A.O. found that the assessee has made the purchases of Rs. 60,86,864/- through various parties through the same bank account of ICICI bank, and the A.O. has estimated the gross profit @ 40.25% on the turnover amounting to Rs. 60,86,864/- and brought to tax the amount of Rs. 24,49,962/-. The Ld. CIT(A) restricted the addition to 15% of gross profit on unaccounted purchases which worked out to Rs. 9,39,029/-. 9. Aggrieved by the order of the CIT(A), the revenue has filed the appeal....