2022 (8) TMI 797

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....e Revenue are as under: 1. The order of the learned Commissioner of Income Tax (Appeals) is erroneous on facts of the case and in law. 2. The Ld CIT(A) has made the decision on the basis of Orders of ITAT and hon'ble High Court. Issue of Unexplained cash credit is a question of facts and can't be decided on the basis of the judicial precedences. 3. The CIT(A) has erred in accepting the Peak Balance Theory put forth by the assessee. 4. The CIT(A) has directed the AO to delete the additions and give an opportunity to the assessee. This amounts to the setting aside of the Assessment Order. The CIT(A) doesn't have power to set aside the order. 5. For these grounds and any other ground including amendment of grounds that ma....

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....he case of group concern e.g. Anbukannan vide order ITA No.238/16-17 dated 16.10.2017 wherein the first appellate authority had considered this issue and held that taxation of gross depots was incorrect. This decision was upheld by Tribunal and finally, the revenue's appeal against the same was not admitted by Hon'ble High Court of Madras in TCA No.216 & 217 of 2019 dated 04.03.2019. The Hon'ble Court held that if the assessee has failed to explain the entries in the bank accounts, then the addition could be made on the basis of peak credit to remove the cascading effect of the unexplained credit entries in the bank account. The assessee had both cash deposits and cash withdrawals in his bank account with the same bank. Therefore, the metho....

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....eady been decided by Tribunal in assessee's group case i.e. Shri A. Anbukannan (ITA N0.1871/Mds/2014 and 1731/Mds.2014 dated 05.04.2017). The bench upheld the application of theory of peak credit on cash receipts and cash withdrawals. Subsequently, the revenue's appeal against this decision has not been admitted by Hon'ble High Court of Madras. We find that similar facts exist in the present case and Ld. CIT(A) has rightly applied this case law to adjudicate the issue. Therefore, no infirmity could be found in the impugned order to that extent. 8. Having said so, we are of the considered opinion that the peak credit has to be worked out properly by considering only cash receipts and cash withdrawals and the same is required to be verifie....