9911796707
TMI Blog2009 (8) TMI 1275X X X X Extracts X X X X X X X X Extracts X X X X ..... 16-10-1997 in the case of Shri Hiten N Shah at his residence at 11, Chinmay Apartment, Vastrapur, Ahmedabad, during the course of which a copy of bank statement in the name of M/s Shah Enterprise for Account No.4195 with the Sarangpur Co-op. Bank Ltd. was seized and marked as Page No.108 of Annexure-A-8. When Shri Hiten Shah was asked about the bank statement he stated that the said account was pertaining to Shri Kaushik K Soni (the assessee) a sales-tax practitioner. The total credits in the said bank account were Rs.13,71,931/- and the account was operated by Shri Kaushik K Soni (the assessee) and therefore notice u/s 158BC read with section 158BD was issued on 29-11-1999 for the block period from 01-04-1987 to 16-10- 1997. The assessee d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shah and immediately after the deposit of the cheques, he has withdrawn the money by self cheques and has given cash to Hiten Shah, he has not been able to prove the said contention. He has not proved that the deposits in the account No.4195 are not related to him and are re1ated to somebody else or Hien Shah. Hence, the deposits in the said bank account have been rightly held as belonging to the appellant. However, as the deposit in the bank appear to be sale proceeds of chemicals or coal, the entire deposits cannot be considered as income in the hands of the appellant. In view of the decision of Hon ble Gujarat High Court in the case of CIT Vs. President Industries reported in 258 ITR 654 (Guj) wherein it has been held that the entire sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nor the CIT(A) were correct in law in estimating the addition. Onus is on the assessee to prove the source of the deposits made in the bank account. This is an admitted fact that the bank account was not duly disclosed. The assessee had made the deposits in the bank as well as made withdrawals from the said bank account. In our opinion, the whole of the deposits cannot be added as the income of the assessee. It is only the peak credit in the bank account which can be treated to be the income of the assessee. We accordingly set-aside the order of the CIT(A) and direct the AO to work out the peak credit on the basis of various entries of withdrawals and deposits in the bank account of the assessee and the addition should be restricted to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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