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TMI Blog2013 (5) TMI 588X X X X Extracts X X X X X X X X Extracts X X X X ..... return of income amounting to Rs.1,08,450/- which was subjected to reassessment u/s 147 of the IT Act. During the course of assessment proceedings it was found that the assessee had maintained a bank account with Axis Bank, Burdwan Branch which remained undisclosed by the assessee in his balance sheet as on 31st March, 2005. The details of the bank account were requisitioned u/s 133(6) of the Act when the credits found in the bank account amounting to Rs.27,03,412/- were 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see could not be again taxed in the impugned assessment year in so far as the same income could not be taxed was brought to the knowledge of the ld. CIT(A) as well as the AO. He pointed out that the peak credit as computed by the AO in the immediately preceding assessment year vis-à-vis in the impugned assessment year amounted to Rs.5,95,000/- when the closing balance in the impugned assessment year was Rs.1,22,000/- only. Therefore, it was only on the basis of the annual 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent year when a sum of Rs.1,22,000/-balance in the bank was brought to taxation to be confirmed and accepted by the assessee u/s 69. Therefore it is not the case of the assessee to take advantage of having rendered the same as income as not computed to formulate taxation of peak credit only, in so far as, the AO has categorically given a finding that the deposits are different than the amount generated in the immediately preceding assessment year. Therefore whether can be isolated 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee in the earlier year as per credit summations having been utilized for the deposit in cash was information available to the AO for initiating proceedings u/s 147 of the Act. Having found out that a peak credit in the impugned assessment year, it was the duty of the AO to telescope the income already rendered in the immediately preceding assessment year as computed by him earlier from the same account with the opening balance and acceptable for the total credit summations 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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