2019 (5) TMI 1129

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.... ground that the Appellate Authority was not justified in upholding the additions made in the hands of the Assessee on the basis of Peak Credit to the extent of Rs. 18,12,888/-:- "i) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is correct in law in directing to adopt 'peak credit' method to arrive at the income of the assessee for the assessment year under consideration? ii) Whether the Tribunal is correct in law in applying peak credit method to arrive at the source of unexplained deposits, by ignoring the source of amount outstanding receivable at the end of the previous years? iii) Whether the Tribunal is correct in law in applying peak credit method to arrive at th....

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....als and deposits are not so significantly substantial to disbelieve the source. Whether the assessee was carrying on any money lending business, has no relevance when an assessment is made considering the amounts deposited in the bank accounts. However, in our opinion, cash deposits alone cannot be the subject of an addition ignoring the cash withdrawals. Hence, finding of learned Commissioner of Income Tax (Appeals) that Peak Credit of Rs. 18,12,888/- alone could have been considered for the addition cannot be faulted. In so far as transactions other than cash are concerned, it may be true that assessee was earning commission from money lending. However, the finding of the learned Commissioner of Income Tax (Appeals) that assessee was earn....