9911796707
TMI Blog2014 (6) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee - assessee has not worked out the “Peak credit balance” as per the method prescribed - the working made by the assessee also requires verification at the end of the AO – thus, the matter is required to be remitted back to the AO for fresh adjudication – Decided in favour of Assessee. - I.T.A. No. 2357/Mum/2013 - - - Dated:- 28-5-2014 - Shri H. L. Karwa And Shri B. R. Baskaran , AM,JJ. For the Appellant : Shri S. C. Tiwari/Natasha Mangat For the Respondent : Shri Deepak Sutariya (DR) ORDER Per B. R. Baskaran, AM : The appeal filed by the assessee is directed against the order dated 04-02-2013 passed by Ld CIT(A)-26 and it relates to the assessment year 2009-10. 2. The assessee is aggrieved by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re was a negative cash balance of Rs.4,34,271/- on 13.1.2009. The assessee did not furnish any explanation for the negative cash balance. The AO did not also accept the explanations of the assessee that the earlier withdrawals were used for making subsequent deposits. Accordingly he took the view that the assessee has failed to offer any satisfactory explanation with regard to the sources for making the deposits. Accordingly, the AO assessed the aggregate amount of credits of Rs.55,37,660/- as the income of the assessee u/s 68 of the Act. In the appellate proceedings, the Ld CIT(A) also confirmed the order passed by the AO. Aggrieved, the assessee has filed appeal before us. 5. We have heard the rival contentions. During the course of he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing cash loans between the lenders and borrowers. But, the very fact that the assessee has used the deposits to the tune of Rs.11,58,389/- would show that the above said explanation of the assessee, at least to the extent of Rs.11,58,389/- is not correct for the simple reason that the assessee could not have used other people s money (lender s money) for making deposits in his name and for meeting his own expenses. Hence the explanation of the assessee is liable to be rejected for the above said amount of Rs.11,58,389/-. We also notice that the assessee does not have any other explanation to offer in respect of the above said amount. Accordingly, we confirm the order of the Ld CIT(A) in respect of the addition of Rs.11,58,389/- referred abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h balances should be assessed as the income of the assessee. He submitted that the assessee has ignored the effect of negative cash balances while working out the peak credit statement. 10. We find force in the submissions of Ld D.R. In our view, the negative cash balance found in a particular day should necessarily be taken as the income of the assessee for the simple reason that a person cannot make disbursements from out of empty cash box, meaning thereby, the negative cash balance represents unaccounted income of the assessee. Once it is taken as the income, it constitutes a source for the assessee and hence the cash balance should be increased by the said amount on the very same date. For example, we have noticed that there was a ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the working made by the assessee also requires verification at the end of the assessing officer. Accordingly, we restore this matter to the file of the assessing officer for making fresh examination. The assessee is directed to work out the peak credit balance in terms of the discussions made supra and furnish the same to the AO. The assessing officer should examine the same and may make necessary amendments, if any, after affording opportunity of being heard to the assessee and assess the peak credit balance as the income of the assessee, besides assessing the negative cash balances, if any and also the amount of withdrawals, which were not re-deposited. 13. In the result, the appeal of the assessee is treated as partly allowed for s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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