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TMI Blog2015 (12) TMI 1879X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of peak balance of Rs.50,435/- and also sustained Rs.25,000/- as additional capital requirement as unexplained investments and treated the same as income of the assessee. No infirmity in the order of CIT(A) as he had rightly applied the theory of peak balance i.e. Rs.50,435/- and took additional capital at Rs.25,000/-. Appeal of Revenue is dismissed. - ITA. No. 1526/Ahd/2012 - - - Dated:- 9-12-2015 - Shri Shailendra Kumar Yadav, Judicial Member And Shri Rajesh Kumar, Accountant Member For the Appellant : Mr. James Kurian, Sr. D.R. For the Respondent : Shri M. K. Patel, A.R. ORDER PER RAJESH KUMAR, A.M: This appeal filed by the Revenue is against the order of CIT(A)-IV, Surat, dated 23.03.2012 for A.Y. 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer's order may be restored. 2. The common issue raised in ground nos. 1 2 of appeal are against restricting the addition to Rs.85,000/- as against Rs.11,89,200/- made by the A.O. 3. The brief facts of the case are that the assessee filed his return of income on 23.01.2009 declaring an income of Rs.1,00,700/- The assessee was engaged in the business of manufacturing and sale of jari goods. The ld. A.O. added Rs.11,89,200/- being cash deposited into account with ICICI Bank and Rs.16/- interest thereon on the ground that the assessee had deposited cash in the said bank account and part of the deposits were drawn and the assessee failed to prove the cash utilization for business purposes and the said bank was not appearing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on locations and has been withdrawn at Surat. No connection has been shown between the appellant and these places. It is therefore logical to assume that the deposits were made by customers of the appellant on account of sale proceeds and these were withdrawn for business purposes. In principle, the income from the undisclosed account would be the peak of credit in the account plus income on the transactions after the date of peak. The peak of credit of Rs.50,435/- occurs on 24.03.2008 and there are no deposits after this date. The income from the account would ordinarily be restricted to the peak of credit, i.e. Rs.50.435/-. However, even if 5% rate of profit as prescribed in Section 44AE is applied, income on turnover of Rs.11,89,200/- wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nexplained credit while framing the assessment. We also note that the said account was not disclosed by the assessee in his balance sheet whereas all the withdrawals were made under his signatures. The CIT(A) applied the theory of net peak balance and sustained the addition of peak balance of Rs.50,435/- and also sustained Rs.25,000/- as additional capital requirement as unexplained investments and treated the same as income of the assessee. Under the present circumstances, we do not find any infirmity in the order of CIT(A) as he had rightly applied the theory of peak balance i.e. Rs.50,435/- and took additional capital at Rs.25,000/-. In view of above facts, the appeal of Revenue is dismissed. 7. In the result, the appeal of Revenue is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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