9911796707
TMI Blog2022 (8) TMI 759X X X X Extracts X X X X X X X X Extracts X X X X ..... ounds taken by the Revenue are as under: 1. The order of the learned Commissioner of Income Tax (Appeals) is erroneous on facts of the case and in law. 2. The Ld CIT(A) has made the decision on the basis of orders of ITAT and hon'ble High Court. Issue of Unexplained cash credit is a question of facts and can't be decided on the basis of the judicial precedences. 3. The CIT(A) has erred in accepting the Peak Balance Theory put forth by the assessee. 4. The CIT(A) has directed the AO to delete the additions and give an opportunity to the assessee. This amounts to the setting aside of the Assessment Order. The CIT(A) doesn't have power to set aside the order. 5. For these grounds and any other ground including amendment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee was quantified as under: Sl. No. Name of the Bank/Branch Account No. Cash deposited (Rs.) 1 ICICI Bank 611401512027 3649450 2. Axis Bank 1681010100253451 2546750 3. Axis Bank 909010032806387 5135500 4. Axis Bank 602010100001342 27434270 Total *Rs. 3,87,65,970/- The above amounts exclude cheque receipts, transfer receipts and cash deposits with persons names attached to it. 3.2 The assessee submitted that the cash deposits are repayments received from various persons to whom the assessee had lent money. It was also submitted that the amounts were already accounted for as they represent the amounts that are only getting recycled. The monies were received back from borrowers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee that the deposits are nothing but recycling of the withdrawals already made from the various bank accounts. There were regular deposits / withdrawals by cash as well as by cheques and therefore, all the transactions ought to be considered together and could not be treated as an independent item of undisclosed income and added severally and hence, to ignore withdrawals from the same account, whether by cash or by cheques shall lead to absurd conclusions. The assessee was liable to explain only the peak balance in the bank accounts for which the assessee relied on various decisions. 5. The Ld. CIT(A) noted that the A.O has sought to assess the gross deposits while the assessee's plea was that only the peak credit was liable to be added as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he jurisdictional High Court in the case as highlighted supra have held that there is no case for assessing gross deposits and that only peak credit only is liable to be assessed. In the present appeal as well, identical facts exists and in view of the cannon of judicial discipline and doctrine of judicial precedence, I hold that the action of AO in treating the gross deposit is untenable. The peak credit as mentioned in para 7.5 is explained by the peak cash balance available. I hold that no further addition is exigible and hence, the AO is directed to delete the addition after verifying the arithmetic correctness of the working and affording opportunity to the appellant. Accordingly, the appellant's ground on this score is disposed of acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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