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TMI Blog2015 (5) TMI 747X X X X Extracts X X X X X X X X Extracts X X X X ..... , the Ld. CIT(A)’s conclusion that peak credit should be added is affirmed. However, it is noted that while arriving at the peak credit of all the bank accounts, it is seen that firstly, the Ld. CIT(A) has not given credit of opening balance as on 1st of April 2005 and secondly, he has also included the cash deposits made SBI bank account of Lalganj Azamgarh which belongs to his brother. If the said bank account belongs to his brother then no addition on account of unexplained credit can be made in the hands of the assessee. Though the said bank account may be relevant to work out the assessee’s commission income but definitely cannot be taken as undisclosed bank account of the assessee as it belongs to assessee’s brother who is separate and distinct from the assessee. Thus, we direct the AO to work out the peak credit only from three undisclosed bank account of the assessee, after excluding the opening balance and the entry in bank account belonging to his brother for the purpose of addition on account of unexplained deposits in the bank account.Once the addition on account of peak credit is being made, then no separate addition on account or commission income should be made se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has registered himself under the category of Business Auxiliary Services of service tax, under service tax laws. The assessing officer noted that, the assessee had shown net profit from money transfer business at ₹ 1,23,800/- however, no profit and loss account was filed. As per the information gathered by him, the assessee is having bank account in Canara Bank and Bhart Co-op Bank. Only one account in Canara Bank was disclosed in the balance sheet and not the other bank accounts. Even the bank balance shown in the Canara Bank does not tally with the figure shown in the balance sheet. As per the AIR information, the assessee had deposited sum of ₹ 43,85,936/- in the Canara Bank account in cash. The assessee had failed to give the name and addresses of the persons from whom he has accepted the money for transfer to Azamgarh U.P. and the persons to whom the money was distributed or handed over. He further noted that in the two bank account of Bharat Co-op. Bank the assessee has deposited ₹ 26,60,060/- and ₹ 23,62,741/-, aggregating to ₹ 50,22,801/-. Since, the assessee neither furnish any necessary evidence nor appeared before the AO to clarify his ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e bank accounts, the details of which relevant as under:- Sl No. Name of the Bank Branch Type of account Account no. (i) Canara Bank Sakinaka OD 1208 (ii) Canara Bank Sakinaka SB 27731 (iii) Canara Bank Sakinaka SB 29646 (iv) The Bharat Co-op. Bank Andheri (E) SB 8781 (v) The Bharat Co-op. Bank Andheri (E) SB 8926 Out of these bank accounts, the last three bank accounts have not been disclosed by the assessee in his books of account. The total addition of ₹ 94,08,737/- was not only made on account of cash deposited but also included opening balance, amount collected by cheque or transfer entries. The three bank accounts, not disclosed; were maintained by the assessee jointl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the credits maintained in the bank account with SBI Lalganj Azamgarh is also to be considered as part of assessee s total turnover, because the money was deposited in the said bank account for disbursement and therefore, it is also part of his turnover. Thereafter he held that commission income @ 3% should be separately added on account of total credits deposited in the bank accounts i.e. three undisclosed bank account and one that of the SBI Lalganj, Azamgarh. The aggregate credit deposits in these bank accounts was at ₹ 1,29,18,737/-. Thus, he worked out the commission income of ₹ 3,87,562/- on such turnover. Finally the addition to the extent of ₹ 33,57,080/- which consisted of peak credit of ₹ 29,69,518/- and commission income of ₹ 3,87,562/- was sustained by the Ld. CIT(A). 5. Before us, learned counsel, Shri Rakesh Joshi, after explaining the entire facts and the nature of assessee s business, submitted that, it cannot be disputed in assessee s case that, he was engaged in the business of money transfer. The deposits in the bank accounts cannot be said to belonging to the assessee or treated as unexplained income. If the source of each and e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee to correlate the cash deposits with some evidence or the same has been recorded in regular books of account. It is also an undisputed fact that three of the assessee s bank accounts was not disclosed, either in the balance sheet or in the books of account. In such a case ones lies heavily upon the assessee to prove the source of the cash deposits in the bank account. Since there was a regular cash deposits and regular withdrawals from same nature of transaction, then positive peak credit has to be worked out for the purpose of addition which has rightly done by the Ld. CIT(A). Accordingly, the Ld. CIT(A) s conclusion that peak credit should be added is affirmed. 8. However, it is noted that while arriving at the peak credit of all the bank accounts, it is seen that firstly, the Ld. CIT(A) has not given credit of opening balance as on 1st of April 2005 and secondly, he has also included the cash deposits made SBI bank account of Lalganj Azamgarh which belongs to his brother. If the said bank account belongs to his brother then no addition on account of unexplained credit can be made in the hands of the assessee. Though the said bank account may be relevant to work out th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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