9911796707
TMI Blog2013 (5) TMI 588X X X X Extracts X X X X X X X X Extracts X X X X ..... was considered in the immediately preceding assessment year as well for the purpose of taxation on the basis of peak credit and has been accepted by the assessee to not involve further litigation it was the AO's duty to telescope the taxation of the same, in so far as the debits and credits have led to depletion in holding the assets in the form of investment in bank as on 31st March, 2005. AO is directed to accept the peak amount as brought on record by the asessee in the impugned assessment year for taxation after giving telescope effect that a part thereof has already been taxed in the immediately preceding assessment year when the bank balance in the said account as on 31st March, 2005 stood at Rs.1,22,000/- only & to verify the bal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e taxed in the hands of the assessee. Aggrieved the assessee preferred an appeal before the First Appellate Authority, who confirmed the same by holding a view that the assesee had never explained regarding the deposits except that it was a savings account which savings of the assessee are routed in the bank after tax paid were proceeds of unallotted shares refunded or dividend as well as cash deposit made out of cash in hand. It was also submitted before the ld. CIT(A) that a peak credit may be considered for taxation in the impugned assessment year in the light of the same having been brought to taxation for the A.Yr. 2004-05 which assessment order has been placed on record. The ld CIT(A) negated the claim of the assessee and confirmed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al information report obtained by the AO with respect to the cash deposits as per bank statement which was purely a savings account was not to be considered in the balance sheet for closing balance has been inflated by the AO by bringing to tax the credit summations in the impugned assessment year u/s 69 has contradicted his own finding of fact that only the peak credit was to be taxed when the opening bank balance available was Rs.5,56,000/-. He therefore prayed that a suitable direction be given to the AO to bring to tax the income of this year after telescoping the income already subjected to tax by him when the closing balance to be taxed u/s 69 is far less than the amount sought to be taxed being the credit summations the amount alread ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lated for holding a view that the opening balance remains taxed in the peak credit to be recomputed with the balance outstanding in assessee's balance sheet as available to the bank is only Rs.1,22,000/- is a far fetched submission. He fully supported the orders of the authorities below for his part of his submissions. 5. We have heard the rival contentions and carefully perused the material available on record. On careful consideration of the facts and circumstances of the case we are inclined to hold that the assessee, who is maintaining proper books of account was having a savings account which was his personal account but utilized for trading in shares in so far as the shares were held in assessee's personal name and the refunds, if a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in the impugned assessment year. Therefore at the end of the year the assessee was left with much less amount in the bank for taxation u/s 69 as otherwise income having been taxed, we are of the considered view that the difference between the two has to be arising from the credit summations only redeposited and subjected to tax in the immediately preceding assessment year was the peak credit in the impugned assessment year amounting to Rs.5,95,000/-. In other words, the AO is directed to accept the peak amount as brought on record by the asessee in the impugned assessment year for taxation after giving telescope effect that a part thereof has already been taxed in the immediately preceding assessment year when the bank balance in the said ..... X X X X Extracts X X X X X X X X Extracts X X X X
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