9911796707
TMI Blog2023 (2) TMI 527X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Ld. CIT(A) in this regard. Estimated business profit - assessee has not co-operated and after adding the cash deposits, estimated the income - HELD THAT:- We find ourselves in agreement with this proposition that when the Ld. CIT(A) has already granted relief on cash deposits and added only peak credit, there is no justification of further addition of business profit. Hence, we set-aside the order of the authorities below on this issue and decide the issue in favour of the assessee. Appeal of the assessee is partly allowed. - ITA No. 6231/DEL/2019 - - - Dated:- 14-2-2023 - SHRI SHAMIM YAHYA , ACCOUNTANT MEMBER AND Ms. ASTHA CHANDRA , JUDICIAL MEMBER For the Assessee : Ms. Mansi Jain , CA Sh. Pranshu Singhal , CA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts and circumstances of the case, ld. CIT(A) has erred both on facts and in law in confirming the order of the A.O. despite the same having been made on the basis of reasons recorded without there being any independent application of mind. (ii) That the reassessment order passed by the A.O. is bad and liable to be quashed as the same has been reopened on the basis of the reasons which are vague and has been recorded only on borrowed satisfaction. 6. On the fact and circumstances of the case, ld. CIT(A) has erred both on facts and in law in rejecting the contention of the assessee that mere depositing cash in the bank accounts does not tantamount to escapement of income. 7. On the fact and circumstances of the case, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that the assessee will not be pressing grounds of appeal no.1 to 7. Hence, the same are dismissed is not pressed. 4. Brief facts of the case are that the assessment was reopened on the basis of AIR information that the assessee has deposited Rs.68,00,867/- and Rs.32,72,900/- during FY 2009-10 relevant to 2010-11 in bank. The assessee has not filed the return for the AY 2010-11 and no details of the assessee was available with the AO due to non availability of PAN. The AO has issued the notice u/s 142(1) time and again but no compliance was made therefore AO has completed the assessment u/s 144 of the Act after making addition of Rs.1,00,73,767/- on account of cash deposited in the bank account and also estimated the business in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hows that appellant has deposited cash and after that withdrawal is made and again cash is deposited in the bank account. Thus cash is rerouted in the bank account. In such a situation peak credit theory could be applied. There are several items of deposits and withdrawals in the bank accounts. The AO has simply picked up the deposit sides of the passbook and made the addition for all the deposits made in the bank accounts, ignoring that there are several withdrawals also. If there are certain deposits and withdrawals as well and there is nothing in the assessment order to correlate these withdrawals any investments made by the appellant, the presumption is that such withdrawals are utilized for making deposits. Thus in the case of the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e reduced accordingly. Upon careful consideration, we note that the Ld. CIT(A) has given considerable relief to the assessee without the assessee establishing the existence of any business. The huge deposits and withdrawal in the bank account have permitted to be taken out the ambit of taxation on peak theory and only two peak have been added. In this process the Ld. CIT(A) has deleted Rs.92,59,529/- of the addition made by the AO. The Revenue has not filed any appeal in this regard. In our considered opinion, the assessee has been granted sufficient relief by authorities below and in our considered opinion the assessee does not need any more relief. We affirm the order of the Ld. CIT(A) in this regard. 8. Another issue raised in this re ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
