9911796707
TMI Blog2016 (8) TMI 957X X X X Extracts X X X X X X X X Extracts X X X X ..... e business of chemical and the deposits being part of his business transaction. First and foremost, this theory of the assessee's of the amounts belonging to his friends would be incongruent. If these amounts were established to be belonging to the friends of the assessee, for whom, he merely deposits the sums and withdraw at their requests for a small commission, the question of applicability of peak credit would not arise. When the assessee failed in his first attempt, he came up with the novel theory of the amounts being for the purpose of his chemical business. This theory probably was pressed in service to enable the assessee to seek the benefit of principle of peak credit. Before the Revenue authorities, this contention was not ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deposits in the bank accounts as income of the assessee? 5. Whether on facts and in law, the Tribunal is right in not accepting alternate plea of assessee to tax peak credit of the bank accounts? 2. Though multiple questions are framed, the issue is only one viz. of the additions of ₹ 13.22 lacs and 12.55 lacs made by the Assessing Officer and confirmed by the CIT[Appeals] and the Tribunal under Section 68 of the Income Tax Act, 1961 ['the Act' for short]. The assessee had filed the return of income on 31.07.2010 for the assessment year 2010-11 disclosing income of ₹ 1.77 lacs. During the course of the assessment, the Assessing Officer found that the assessee had maintained two undisclosed bank accounts, one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he refused to divulge the identity of such so called friends. The statement of the assessee cannot be taken on face value because on verification of the bank statement, it is revealed that cash has been deposited from various cities across the country right from Silliguri in West Bengal to Madurai in Tamil Nadu. It is unbelievable that the assessee had such a large network of friends. The assessee could be a part of Hawala racket. Therefore, this is nothing but the unaccounted transactions of the assessee. Since the assessee had miserably failed to explain the source of cash deposits and also the purpose of withdrawals through ATM, these transactions are nothing but the unaccounted income of the assessee from undisclosed sources within the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the same must have element of genuineness and creditworthiness to further buttressed by identity of the parties concerned. No such course of action has been adopted in the instant case. The assessee's next argument of having charged ₹ 500/- to ₹ 1000/- in each case also suffers from the same lacuna of cogent evident. We find no substance in his argument challenging the impugned additions on merits. 6. The assessee's next argument seeks to invoke peak credit principle in the impugned addition. His case is that the relevant credit transactions have corresponding debit transactions wherein the very amount has been re-deposited. We find the same to be entirely a misconceived plea. We revert back to his explanation t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls on record would suggest that admittedly, the assessee had maintained two bank accounts, not disclosed to the Revenue authorities. In such bank accounts, multiple cash deposits were made by the assessee from different places. The assessee initially explained that such deposits were made by his friends and he, in turn, would withdraw the amounts at Ankleshwar and handover the cash to the friends for a small commission. He, however, refused to supply details of such friends. Before the Tribunal, however, the assessee adopted the entirely novel theory of being engaged in the business of chemical and the deposits being part of his business transaction. First and foremost, this theory of the assessee's of the amounts belonging to his frien ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
