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TMI Blog2016 (10) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... evity. 3. The facts of the case are stated in brief. The assessee is carrying on the business of courier service under the trade name of Manish Courier and side by side, the assessee is also engaged in his traditional and family business of zari work under the name of Manish Trading. The return of income was filed by the assessee on 21.01.2010 disclosing the total income of Rs. 2,15,499/-. The AO completed the assessment under section 143(3) by making the disallowance on account of unexplained cash credit at Rs. 1,96,38,780/-. Aggrieved from the order of the Assessing Officer, the assessee filed an appeal before the commissioner of Income Tax (Appeals)-xxx, Kolkata, who has partly deleted the addition made by Assessing Officer. Now the Revenue is in appeal before us against the partly amount deleted/partly relief given by the CIT(A). 4. Although in this appeal, the Revenue has raised four grounds of appeal but at the time of hearing, the grievance of the Revenue has been confined to ground No.2. Ground No.2 is solitary grievance of the Revenue. Other grounds of appeals reiterate the grievance which we have noted in ground No.2 therefore, other grounds of appeal have not been pres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndard Chartered bank, Park Street branch and then sends the money to the relative of the remitter under counter signature of the recipient. This was the modus operandi of assessee's courier service. On 06.09.2011, a notice was issued by AO under section 133(6) of the I.T. Act, 1961 to Standard Chartered bank stating full facts with the request to send the copies of all bank statements of the assessee either in his personal name or in the name of the business or jointly. On 20/09/2011, the Standard Chartered bank delivered two copies of bank statement namely, (1) Mojammal Molla Hussain , A/c. no. 22505656112 and (2) Mr. Mojammal Hossain Mollah, A/c. no.32205357788. But on examination of these two accounts, it is noticed that these statements are all related to current accounts maintained by the assessee. Thus, there happens to be absolute disorder and confusion in respect of the AIR information which relates to savings bank account only and the bank statements forwarded by Standard chartered bank relates to Current accounts. In the face of such a situation another letter dated 22.12.2011 was issued to the said bank seeking clarification in this regard and to send the copy of bank s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .12. It is therefore held that the Appellant's case is covered by the decisions in the above cited cases and the peak credit of the deposits i.e. the highest deposit in a particular day is to be considered for addition. The total deposits in this account are summarized as under- "BANK STATEMENT FOR THE PERIOD OF 10.04.2008 TO 31.03.2009 Opening Balance as on 01.04.2008 Rs. 22,366-00 Total Deposit Rs. 1,98,77,470-69 Rs. 1, 98, 99,836-01 Less: Withdrawal (-) Rs. 1, 98, 98,661-67 Closing Balance as on 31.03.2009 (-) Rs. 1,175-24" Therefore in this bank account i.e. Standard Chartered S.B A/c. No.32410322761, the opening balance as on 01.04.2008 in this account was Rs. 22,366/- and the closing balance Rs.l,175/-. The peak deposit was of Rs. 3,36,800/- (29.09.2008), therefore the addition made by the A.O. in respect of cash deposits in the relevant bank account is restricted to the peak amount of Rs. 3,14,434/- (3,36,800 - 22,366). 4.2 It is further seen that the commission earned on this business in respect of the transaction of this bank account had also not been offered to tax by the Appellant since this account was not disclosed in the Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nover in respect of undisclosed bank account has been included in respect of commission earned and disclosed in his Profit & Loss a/c. He also submitted that even if such deposits are to be considered as unexplained in the said account, then it is the peak credit which should be taken as assessee`s income, as the withdrawals were also being made against the deposits and benefits of which should be allowed to the assessee. The Ld. CIT(A), has worked out the peak credit of the cash deposits which is restricted to the peak amount of Rs. 3,14,434/-, as income, in addition to the 5% profits computed by the Ld. CIT(A) on deposits, therefore, the ld AR strongly relied on the order of the ld.CIT(A). The ld. A.R. before us, also submitted a copy of the judgment of Hon'ble ITAT, Kolkata "A" bench in the case of ITO-vs- Madhu Kedia in ITA No.1767/Kol/2011 dated 26.04.2012, wherein the same issue has been discussed,vide para 4 of the order as follows: "4. The CIT(A) after taking the details of deposits and withdrawals restricted the peak addition at Rs. 1,95,597/-. Revenue before us could not adduce anything that the peak credit assessed by the CIT(A) is wrong. We find that the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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