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2020 (4) TMI 53 - HC - Income TaxEstimation of peak credit - Non rejecting books of accounts - HELD THAT - In the fact situation of the case, the learned counsel had tried to rework the amount of peak credits, but the learned Appellate Tribunal was not impressed with that working since it was self serving. As such, in the facts and circumstances of the instant case, the learned Appellate Tribunal cannot be held to have not been legally justified in upholding estimation of peak credit made by the Assessing Officer without rejecting the books of accounts. As such, the order of the learned Appellate Tribunal does not warrant any interference on the basis of the substantial question of law as raised.
Issues:
Estimation of peak credit without rejecting books of accounts. Analysis: The case involved a substantial question of law regarding the justification of the Appellate Tribunal in upholding the estimation of peak credit made by the Assessing Officer without rejecting the books of accounts. The assessment order highlighted discrepancies in the accounts of the assessee, questioning the source of funds deposited in the bank account. The assessee's explanation attributing errors to a computer virus was dismissed as fabricated, with the authorities concluding that the peak credit amount was deposited through undeclared sources and treated as income. The Tribunal observed that the assessee failed to provide substantial evidence to explain the nature and source of the credits, leading to the confirmation of the addition by the lower authorities. Despite the counsel's attempt to rework the peak credit amount, the Tribunal deemed it self-serving and upheld the addition. Consequently, the Tribunal's decision was deemed legally justified in the absence of sufficient explanation from the assessee. In conclusion, the High Court found no grounds to interfere with the Tribunal's order based on the substantial question of law raised. Therefore, the appeal was disposed of accordingly, affirming the Tribunal's decision regarding the estimation of peak credit without rejecting the books of accounts.
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