TaxTMI 
TaxTMI 
2015 (7) TMI 1441
X X X X Extracts X X X X
X X X X Extracts X X X X
....und challenges the CIT(A)'s order restricting the impugned addition of Rs. 56,66,052/- added as unexplained investment to the tune of Rs. 9,02,519/- thereby granting relief of Rs. 47,63,533/- by treating it as a case of unexplained cash credit. The Assessing Officer noticed in the course of scrutiny that the assessee had not disclosed her bank account maintained with the Prime Co-op. Bank, Katargam GIDC Branch, Surat. The same contained interest sum of Rs. 11,436/- as well and cash deposit of more than Rs. 16,00,000/-. The Assessing Officer in assessment order dated 24.12.2009 quoted section 69 of the Act and treated the above stated bank account as unexplained and the entire credit therein as her unexplained invest....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nterest income of Rs. 11,4367- from this account. The interest income was also not offered in the return of income. No explanations were offered in response to show cause issued by the A.O. The A.O. made an analyses of the entries in the bank account and made the following observations :- 1) That unexplained cash of Rs. 6,67,000/- had been deposited in the bank during the period 3.04.2006 to 2.05.2006. 2), The peak credit in the bank account was Rs. 3028571/- which was the opening balance for the period and the same amount was used for cash withdrawal, then cash deposit, transfer in and transfer out. 3) In absence of any reply from the assessee, total credits cash as well as cheque in bank account d....
X X X X Extracts X X X X
X X X X Extracts X X X X
....7] Rs. 30,28,571/-, only but it has been settled law that the opening balance cannot to treated as peak amount of the year since it pertains to previous year, therefore the addition he instant case can be restricted to the maximum of G.P. percentage of the total credits made after the peak amount which was Rs. 40,43,382 and Rs. 6,67,000/-fresh cash introduced [as per statement enclosed] during the year. And if the GP is taken that too to the maximum of 5% as per sec, 44AF. Therefore the maximum addition can made in the instant case comes to Rs. 47,10,382/- @ 5% - Rs. 2,35,519 only. But it will be kind to be noted that the assessee has offered suo moto Rs. 6,67,000/- as unexplained cash credit/....
X X X X Extracts X X X X
X X X X Extracts X X X X
....05.2006 amounting to Rs. 6,67,0007-. This amount is to be held as unexplained in the hands of the appellant for the year. In their submissions the appellant has also accepted that this excess fresh introduction in cash is unexplained. The addition on account of unexplained investment for the year is Rs. 6,67,000/-. The addition on account of profits made from the transaction in the account will be the additional income of the appellant and the appellant has himself proposed this to be computed @ 5% on the credits in the a/c after the date of peak. I think this computation is reasonable. The additional Income on transactions comes to Rs. 2,35,519/-. The addition is therefore restricted to Rs. 9,02,5197- (Rs. 6,67,0007- + ....