9911796707
TMI Blog2016 (8) TMI 358X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue in dispute, and accordingly the ground of the appeal is dismissed. - Decided against assessee. - ITA No.:- 6693/Del /2013 - - - Dated:- 27-6-2016 - SHRI H S SIDHU JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER For The Assessee : Shri Kapil Goel, Adv. For The Department : Shri Amit Jain, Sr. DR ORDER PER O.P. KANT, A. M. This appeal by the assessee is directed against order dated 18/11/2013 of Ld. Commissioner of Income-tax (Appeals),XXVI, New Delhi for assessment year 2009-10, raising following grounds: Assessee by : Shri Kapil Goel, Adv. 1. That on the facts and in the circumstances of the case and in law the Ld. CIT(A) erred in giving contradictory finding by holding at page 9 of his order tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other authorities i) without show causing assessee on the same and ii) also it is outside the purview of powers of Ld. CIT(A) u/s 250/251 of the Act which are preyed to the expunged. Relief Claimed i) To delete the addition sustained at ₹ 714,738/- from bank deposits of ₹ 21,25,620/- and to sustain the addition at ₹ 14,071/-; ii) To apply peak theory for maximum addition sustainable at ₹ 236,587/- iii) To expunge adverse directions without following audi altrem partem; iv) Any other relief as deemed fit and appropriate in facts and circumstances of the case That the appellant craves leave to add, to amend, modify, rescind, supplement or alter any of the grounds stated herein abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act ). On appeal, the Ld. Commissioner of Income-tax (Appeals), reduced the addition to ₹ 7,14,738/- following the asset expenditure basis. Aggrieved, the assessee is in appeal before the Tribunal raising the grounds reproduced above. 3. At the outset, the Ld. Authorised Representative, submitted not to press grounds No. 1 and 2 of the appeal and therefore both the grounds are dismissed as infructuous. 4. In ground No. 3, the assessee raised the issue of not accepting the peak theory by the Ld. Commissioner of Income-tax( Appeals). 5. Before us Ld. Authorised Representative of the assessee submitted that deposits made in bank account were subsequently withdrawn and redeposited and peak of such deposits worked out to be ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasoning as why the theory of peak credit was not applicable to the facts of the assessee. The relevant para of the impugned order is reproduced as under: 6.2. I have perused the IDBI bank account where the deposits aggregating to ₹ 21,25,620/- have been made. Almost all deposits are outstation deposits; viz: Ujjain, Gondia, Varansi, Lucknow, Bilaspur, Hyderabad, Amrawati,Hubli, Rajsamand, Dimapur, Kozhikode, etc. and almost all withdrawals are in cash in Delhi through cheques. The Ld. Counsel contended that the deposits are made by the outstation buyers of 'bearings' to whom the sale have been made by the appellant. I have analyzed the entire issue in-depth. The addition of peak credit in the bank account can only be m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made at different stations like Ujjain, Gondia, Varanasi etc and the withdrawals were made from Delhi and the assessee itself has accepted that the deposits were trading receipts from sale of automobiles parts and withdrawals were towards purchases then in such circumstances, the withdrawals are not utilised for redeposits and therefore peak theory of credit cannot be applied to the facts of the case. In the case of Shri Rajeev Khurana (supra) cited by the Ld. AR, the withdrawals from bank account constituted the source of deposits therein and source of deposit was not from trading receipts, thus facts of the case are distinguishable. In the case of Inderpal Chawla (Supra) also the AO didn t make any adverse finding with regard to deposit i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bank account. The cash deposits in the IDBI bank account only reflect the realized sales in cash and not the stock and debtors. Since the appellant has not been searched, therefore, there is no detail in respect of undisclosed assets in any form. 6.5 The income of the appellant has to be worked out on accrual basis or asset-expenditure .basis and higher of these two has to be assessed to avoid double taxation as the income on accrual/receipt basis, later on, gets appropriated / manifested / expended in assets and or expenditure. Presuming that the appellant has utilized his business establishment to run the undisclosed business also, then in such a situation, he is bound to have the stock in trade and debtors as undisclosed assets of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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