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TMI Blog2012 (9) TMI 330X X X X Extracts X X X X X X X X Extracts X X X X ..... Shiva Distributors, thus these documents are insufficient to say that assessee was running Shiva Distributors. Thus looking to the nature of bank account that amounts have been deposited and withdrawn systematically which suggest that there is circulation of the money. As only credit sides are not to be considered as unexplained investment the benefit of set off representing the withdrawals has also to be granted to the assessee, in such situation, the learned first appellate authority has rightly held that peak credits in the bank account is to be assessed as income of the assessee - against assessee. - ITA No. 5463/Del/2011 - - - Dated:- 31-7-2012 - SHRI RAJPAL YADAV AND T.S. KAPOOR, JJ. Revenue by: Shri Rajiv Ranka, Sr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. With the assistance of learned representative, we have gone through the record carefully. Since assessment order is an ex parte order, therefore, there is no elaborate discussion disclosing the factual position for making addition of Rs.16,06,746 is discernible. The defence of the assessee is that assessment has been passed without affording due opportunity of hearing. He filed evidence before the learned first appellate authority and submitted that he is a small time trader, doing the business of medicines in the name of his proprietaryship concern M/s. Shiva Distributors. The sales made in cash are deposited in the bank account. He had got DDs from this account in the name of his supplier. In order to buttress his contentions, he plac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e pointed out that on 19.11.2004, a sum of Rs.29,551 has been debited from the account of the assessee under the entry yourself DD . A draft of Rs.29,500 was issued in the name of Aditya Medical Sales who is the supplier of the assessee. He had submitted the bill given by Aditya Sales and placed on the paper book. The learned counsel for the assessee further drew our attention towards the copies of other drafts and the equivalent amount debited from his bank account. On the strength of these documents, he pointed out that assessee was doing the business of trading in medicines. He has also submitted that assessee is having sales-tax number. Learned DR on the other hand submitted that for running a medical store, assessee needs certain lice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ors. However, looking to the nature of bank account, it emerges out that amounts have been deposited and withdrawn systematically which suggest that there is circulation of the money. Hence, only credit sides are not to be considered as unexplained investment. The benefit of set off representing the withdrawals has also to be granted to the assessee. In such situation, only the peak credits available on any point of time during the accounting year at the most can be considered as unexplained credit of the assessee. Taking into consideration the order of the Learned CIT(Appeals) and the other material, we are of the view that learned first appellate authority has rightly held that peak credits in the bank account is to be assessed as income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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