9911796707
TMI Blog2013 (6) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... stical purposes. As regards interest from M/s Nishan Bearing Co. Pvt. Ltd. vide letter dated 21st December, 2009 assessee had himself admitted that it was omitted to be shown in the computation of income and TDS was also not claimed. Therefore, addition on account of interest was rightly made by the AO. Against assessee. - I.T.A. No.3962/Del/2011 - - - Dated:- 17-5-2013 - Shri Rajpal Yadav And Shri T. S. Kapoor,JJ. For the Appellant : Shri K. Sampath, Advocate. For the Respondent : Shri A. S. Awasthi, Sr. DR. ORDER Per TS Kapoor, AM:- This is an appeal filed by the assessee against the order of ld CIT(A) dated 29.12.2010. The grounds of appeals taken by the assessee are as under:- 1. While computing the income o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case prevailing in assessment year 2005-06. 6. While computing the income of the assessee, the Ld CIT(A) has erred in confirming the addition of interest of Rs.69,265.00 from Nishan Bearing Co. Private Limited as the assessee had not received any interest from Nishan Bearing Co. Private Limited during assessment year 2002-03. 2. The brief facts of the case are that the case of the assessee was reopened u/s 148 of the Act as during the course of assessment proceedings for assessment year 2005-06 it was detected that assessee was having a undisclosed Savings Bank Account bearing No. 055010100016791 with UTI Bank, New Delhi. The assessee in his statement recorded during the course of assessment proceedings for that year had admitted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irmation from these parties. The Assessing Officer did not agree with the contentions of assessee and made the addition in respect of entire deposits in the two bank accounts. 4. The Assessing Officer further observed that there was cash deposit of Rs.40,000/- on 3.4.2001 with Punjab National Bank for which the assessee had submitted that Rs.39,000/- was lying cash in hand as on 1.4.2001 and further Rs.4,000/- was borrowed from his mother. However, the Assessing Officer did not agree with the contention as there was no proof of opening balance as well as loan from the mother. Therefore, the addition of Rs.40,000/- was made. 5. The Assessing Officer further observed that assessee had not disclo0sed interest income amounting to Rs.69,265/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidering the withdrawals cannot be made and he offered for addition on the basis of peak credit which should be calculated after considering Rs.40,000/- deposited in the Punjab National Bank. 9. With respect to interest, the Ld AR submitted that since the assessee is not maintaining any books of accounts and he had not received interest income, therefore, when interest will be received, it will be offered for taxation. 10. The Ld DR, on the other hand, argued that the whole of the amount deposited in bank account should be considered for taxation. Therefore, he supported the order of the Assessing Officer and ld CIT(A). 11. We have heard the rival submissions of both the parties and have gone through the material available on record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... escription of goods etc. With this fact in view that assessee was not able to file proper information regarding persons from whom purchases were made even then the entire deposits in the bank account cannot be taxed as income of the assessee as in that case theory of peak credit should have been applied. In view of the facts and circumstances explained above, we are of the considered opinion that the case of the assessee be re- adjudicated by the Assessing Officer and addition if any on account of deposit in banks be made after considering withdrawals made by the assessee and peak amount after considering withdrawals should be considered as addition for this. For the purpose of calculation of peak credit, the amount of Rs.40,000/- deposited ..... X X X X Extracts X X X X X X X X Extracts X X X X
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