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TMI Blog2017 (3) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... being a professional and an educated person is expected to explain the cash deposits meticulously. The assessee has miserably failed in doing so and is seeking to take refuge of generic and bald possibilities. The whole explanation is completely bizarre and is tainted with conjectures. We are not inclined to be drifted by the case made out by the assessee based on vague possibilities. In the absence of cogent evidence, we are not willing to disturb additions made by the AO by adopting peak credit theory which is quite just and fair. The assessee is taking shelter of a designed theory to merely fill up the explanation of cash deposits by roping in theory of deposits out of past savings etc. as an afterthought which is quite fluid withou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of AO in adding ₹ 8,26,634/- as the income of the assessee by way of peak of cash deposited in bank account. 3. Briefly stated, the assessee filed return of income declaring total income of ₹ 1,93,765/- for the AY 2009-10. Thereafter, the case was subjected to scrutiny assessment under s.143(2) of the Act. It was observed by the Assessing Officer (AO) that the assessee has made cash deposits of ₹ 15,48,800/- in the bank account with People s Cooperative Bank Ltd., Rajkot which was not reflected in his regular books of accounts. The assessee in its reply before the AO submitted that he is carrying on profession as a medical doctor in general practice and is not maintaining books of accounts for the professional income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n sourced to the assessee has not been adduced. Therefore, the explanation offered by the assessee on part of money sourced out of family funds in cash was not found tenable. However, the AO accepted the plea of the assessee towards peak credit theory. He accordingly made addition of ₹ 8,26,634/- to the total income of the assessee as unexplained deposits as per peak credit theory after granting concessions towards possibility of re-deposits out of earlier withdrawals. Thus, out of total cash deposits of ₹ 15,48,800/-, an amount of ₹ 8,26,634/- was found unexplained by the AO. The CIT(A) revisited the entire factual aspects and found that the AO has very judiciously considered the factual matrix and calculated the peak val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ily members while determining the peak credit. The Ld.AR next contended that while computing the peak of ₹ 8,26,634/-, the AO has wrongly taken credits by cheques totalling to ₹ 1,34,308/- which is prima-facie deductible from the amount of aforesaid peak credit. The Ld.AR thereafter relied upon the decision of Hon ble Gujarat High Court in the case of CIT vs. Ranchhod Jivabhai Nakhava (21 Taxmann.com 159) for the proposition that in the circumstances where the assessee has furnished, the identity and confirmations, the additions towards small cash credits are not warranted. The Ld.AR also relied upon the decision of the Coordinate Bench of Tribunal in the case of Sanjayaraj Petroleums and Hotel vs. ITO in ITA No.209/RJT/2014 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not cut ice. The assessee being a professional and an educated person is expected to explain the cash deposits meticulously. The assessee has miserably failed in doing so and is seeking to take refuge of generic and bald possibilities. The whole explanation is completely bizarre and is tainted with conjectures. One can see through the listless explanation that the cash was accumulated over years and waked up to deposit the same in this year not by the assessee but by wife and other relatives in tandem via the undisclosed bank account of assessee. The whole explanation is sordid and marred with obscurity. The need to deposit the cash of other person in the bank account of assessee by passing the banking channel is not known. Coupled with thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h in the case of Sanjayraj Petroleums and Hotel (supra) also is prima-facie distinguishable on facts. The assessee is not found to have successfully correlated the alleged receipt of cash from the various parties involved in the instant case. Hence, we fail to comprehend merits in the contention of the assessee for further exclusion of purported source of cash deposits from own family members in addition to benefit of peak credit. The plea of the assessee is thus discarded. 8. We now turn to the alternative plea of the assessee that while computing the peak amount, certain cheque entries of ₹ 1,34,308/- has been wrongly included. This plea, if found to be true, deserves acceptance. This aspect is untested before the lower authori ..... X X X X Extracts X X X X X X X X Extracts X X X X
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