9911796707
TMI Blog2011 (8) TMI 1272X X X X Extracts X X X X X X X X Extracts X X X X ..... Briefly to state the facts: For the assessment year 1995- 96, the assessee-respondent filed return disclosing his total income at ₹ 2,21,630/-. After examination, the assessment was finalized under Section 143(3) of the Income Tax Act at ₹ 2,10,46,904/-. What happened was that the assessee, although was in the business of commission of clothes but from the assessment year 1993-94, he entered into the business of shares and earned income from activities of making applications and discounting of cheque/draft. The investigation wing, when made queries, it found that the assessee had opened various accounts with Relief Mercantile Co-operative Bank in different names. However, all of them were being operated by the assessee and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formulating above mentioned question of law. 7. Heard learned counsel for the parties with whose assistance this Court has scrutinized orders of adjudicating authorities. The facts are not in dispute that the assessee, from the assessment year 1993-94, had initiated the business of cheuqe discounting and also was making applications for shares from the primary market. Admittedly, he had opened various bank accounts with the co-operative banks in the names of different persons, which were operated by him. The fact is also not in challenge that there is no books of accounts maintained by the assessee nor are there any other material to work out the profit exigible to tax. 8. It also culls out from the record that when the Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of the bank accounts. And, a letter was also sent to the assessing officer asking him to give comments in respect of the working of peak based on 90 days, 60 days, 45 days as well as to verify the working of peak furnished by the assessee by calling for the report within 10 days, but to no avail. On the grounds that the said correspondence consumed much time and that there was no response from the assessing officer and the matter being old, the CIT (A) accepted the peak calculation worked out by the assessee's power of attorney and therefore presuming that the working of peak credit furnished was not challenged nor were any comments offered, the same was accepted. CIT(A) gave its findings with regard to the working of peak credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it worked out the income. For the assessment year 1995-96 by a detailed working out and by applying rate of 0.5%, it reduced the assessed income of assessee considerably. 11. The Tribunal, while examining that issue, profusely quoted from the order of CIT(A) and concurred with the findings of the CIT(A) essentially on the ground that though the peak credit calculation of both the years submitted by the assessee-respondent were forwarded to the assessing officer and despite several reminders, he refrained from furnishing his comments in respect of the correctness or otherwise of this working of peak credit. The Tribunal also observed that the report was submitted by the assessing officer on 12.11.2000 stating that the deposits by chequ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of any response to these reminders may not form the basis of acceptance of working of peak credit given by the assessee-respondent. However, had that been the case simply, it could have formed a ground of close scrutiny and interference by this Court but, both the authorities have pointed out that the department could not point out any infirmity in the working of peak credit and therefore, order warrants no interference. Observations hereinabove are to ensure that such a trend may not get vindicated by order of this Court. However, considering the fact that the matter is very old and before this Court, the exercise of fact finding is not to be undertaken and further more, at such a belated stage, sending the matter back to the authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X
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