2012 (5) TMI 693 - AT - Income Tax

Summary

Issues involved: Cross appeals by Revenue and Assessee against order of CIT(A)-Central-I, Kolkata for A.Yr. 2005-06.

Revenue's Grounds (ITA No.141/Kol/2012):
- Benefit of Peak credit allowed without explanation on fund recycling.
- Discrepancy in peak credit calculation by CIT(A) and AO.
- Request for altering grounds.

Assessee's Grounds (ITA No.27/Kol/2012):
- Challenge to CIT(A)'s order.
- Consolidated peak credit should be considered.
- Request for adding or amending grounds.

Facts:
- Cash seized led to scrutiny assessment.
- Six bank accounts investigated post seizure.
- Assessee claimed cash from clients for investments.
- AO treated total deposits in bank accounts as undisclosed income.
- CIT(A) directed treating peak credit of bank accounts as undisclosed income.
- Tribunal set aside orders for lack of investigation into debit side.

Tribunal's Decision:
- Neither AO nor CIT(A) followed Tribunal's direction.
- Proper method is to consolidate all bank accounts for peak credit determination.
- Orders set aside for recalculating peak credit of consolidated bank accounts.
- Appeal of Revenue and Assessee allowed for statistical purposes.

Judgment Date: 09.05.2012.