2013 (10) TMI 1577 - AT - Income Tax

Summary

Issues involved: Appeal by Revenue against CIT(A) order for assessment year 2008-2009 regarding addition of unaccounted income deposited in undisclosed bank account.

Summary:
The Revenue's appeal challenged the CIT(A)'s decision to restrict the addition of unaccounted income deposited in an undisclosed bank account. The Revenue argued that the assessee failed to prove that cash deposits were received back and available for re-deposits, thus peak credit benefit should not be allowed. The assessee contended that the CIT(A)'s order was well-reasoned, citing a similar case where only the peak amount of cash deposits was assessed. After considering the submissions and relevant precedents, the ITAT upheld the CIT(A)'s decision. The ITAT found that the CIT(A) correctly confirmed the addition of the peak amount of deposits in the assessee's bank account, as the funds were circulated through withdrawals and deposits. The ITAT noted that the peak amount calculation by the CIT(A) was appropriate, and there was no evidence to suggest any error in the assessment. Therefore, the ITAT dismissed the Revenue's appeal, affirming the CIT(A)'s order to assess the peak amount of credit in the bank account of the assessee.

The appeal of the Revenue was dismissed, and the order was pronounced in Open Court as per the mentioned date.