TaxTMI 
TaxTMI 
2017 (4) TMI 1477
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....idence, probabilities, facts and circumstances of the case. 2. The learned CIT [A] is not justified in upholding the addition of as unexplained cash deposits in the bank account at Bank of India, RPC Branch, Bangalore under the facts and in the circumstances of the appellant's case. 3. Without prejudice to the above, the addition made is excessive and liable to reduced substantially. 4. The learned CIT [A] is not justified in upholding the addition of Rs. 39,265/- as interest income under the facts and in the circumstances of the appellant's case. 5. Without prejudice to the right to seek waiver with the Hon'ble CCIT/DG, the appellant denies himself liable to be charged to interest u/s. 234-A ....
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....urnished by the assessee and rejected the same. Accordingly, the Assessing Officer made addition of Rs. 26,93,000 as unexplained cash deposit in the S.B. Account. The assessee challenged the action of the Assessing Officer before the CIT (Appeals) and submitted that the deposits in the joint bank account represents the income of the 3 HUF which are also engaged in the Progitham, Mess, Home needs like pickles, papads etc and tailoring. The assessee also referred to the returns of income filed by these three HUF. The CIT (Appeals) was not impressed with the explanation of the assessee and noted that the income declared by three HUFs is very less and therefore considering the income declared by the HUF in the return of income total amounting t....
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....ents gross receipts of the businesses of these three HUF and therefore in any case only 1/3 rd of amount of the deposit can be treated as belonging to the assessee. Further since there is a corresponding withdrawal during the year under consideration therefore only peak deposits may be considered for the purpose of assessment as income. Alternatively the learned Authorised Representative has submitted that since these deposits represents the proceeds therefore only gross profit has to be treated as income. In support of his contention he has relied upon the decision dt.30.12.2009 of the co-ordinate bench of this Tribunal in the case of Sri G. Subbaraya Setty Vs. ITO in ITA No.83/Bang/2009. 6. On the other hand, the learned Departmental R....
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..... It is pertinent to note that when the said cash in the Savings Bank Account in the joint name of three persons then in the absence of any finding or any other material brought by the Assessing Officer to show on record that all transactions in the bank account has been carried out by the assessee, the entire deposit cannotbe treated as income of the one account holder. Further once this amount was found deposited in the joint account of the three persons then in the absence of any specific share of deposit the said amount can be assessed in the hand of AOP comprising of three account holders. There is no evidence or finding that the entire deposit was made by the assessee and belongs to the assessee therefore, the entire deposit in the ac....
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....irection to work out the taxable income in pursuance of peak credit method and to conclude the assessment, after affording a reasonable opportunity to the assessee of being heard. It is ordered accordingly." Therefore the Assessing Officer is directed to consider only the peak deposit in the S.B. Account for the purpose of assessing the income. Further since the account is in the name of three joint account holders therefore only 1/3 rd of the peak credit can be assessed in the hand of the assessee. 8. As regards the claim of the assessee that this represents the business proceeds of the 3 HUFs it is noted that the assessee has not furnished any evidence in support of the claim except the return of income wherein the income was declar....