2012 (7) TMI 203 - AT - Income Tax

Addition on account of unexplained deposit into bank as reduced by CIT(A)- Held that - As the A.O. asked for details of persons from whom the cheques were received by the assessee and to whom the cheques were issued by the assessee so that peak credit in her account could be arrived at and the same be taken for making addition for deposits made by the assessee in her bank account through cheques. Since this information was not given by the assessee, the addition was curtailed to give relief to the assessee simply by accepting the submission of the assessee - remand the matter back to issue speaking order.

Summary

Issues:
Late filing of appeals by Revenue, condonation petition, deletion of additions made under section 69A, assessment years 1994-95 and 1995-96, peak credits for assessment, unexplained cash credits, directions by Hon'ble ITAT, Ahmedabad, consideration of withdrawals and deposits in bank account, non-speaking order by ld. CIT(A), necessity of necessary details for peak credits.

Late Filing of Appeals and Condonation:
The Revenue filed appeals against separate orders of ld. CIT(A) for assessment years 1994-95 and 1995-96, which were filed late. A condonation petition was submitted, and after due consideration, the delay was condoned, and the appeals were admitted for hearing.

Deletion of Additions under Section 69A:
The Revenue contested the deletion of additions made under section 69A by the CIT(A) for both assessment years. The CIT(A) had deleted a portion of the additions made by the Assessing Officer, leading to the Revenue's appeal.

Peak Credits and Unexplained Cash Credits:
The case involved the assessment of an individual for the assessment year 1994-95. The Assessing Officer made additions based on unexplained deposits in the bank account. The CIT(A) considered only the peak credits as unexplained cash credits, leading to the deletion of a portion of the additions.

Directions by Hon'ble ITAT, Ahmedabad:
The Hon'ble ITAT, Ahmedabad set aside the Assessing Officer's order, directing a fresh assessment considering the peak deposits in the bank account. The Assessing Officer then made additions based on lack of information regarding the cheques issued and deposited by the assessee.

Consideration of Withdrawals and Deposits in Bank Account:
The Assessing Officer's assessment was challenged before the CIT(A), who considered both withdrawals and deposits in the bank account. The CIT(A) only treated peak credits as unexplained cash credits, leading to the deletion of a portion of the additions.

Non-Speaking Order and Necessity of Details:
The Revenue appealed against the CIT(A)'s order, arguing that a non-speaking order was passed without necessary details of persons related to cheques deposited and issued by the assessee. The Tribunal agreed that the CIT(A) did not have sufficient information and remanded the matter back for a fresh speaking order.

In conclusion, the Tribunal allowed both appeals for statistical purposes, emphasizing the necessity of obtaining necessary details to determine peak credits in the assessee's bank account for a fair assessment.