9911796707
TMI Blog2024 (9) TMI 853X X X X Extracts X X X X X X X X Extracts X X X X ..... plaining the peak credit determined the balance unexplained amount - Further, we find in order to come to such conclusion, the ld. CIT(A) placed reliance in the case of S. Kulanthaian [ 2019 (3) TMI 2065 - ITAT CHENNAI] who is relative of the assessee, wherein, the ITAT affirmed the order of the ld. CIT(A) in working the peak credit method. CIT(A) relied on the decision of the Hon ble Jurisdictional High Court in the case of PCIT v. S. Anbukannan [ 2019 (5) TMI 1129 - MADRAS HIGH COURT ] who is relative of the assessee, which held the method of peak credit was rightly adopted for addition of the alleged undisclosed income of the assessee and is a well settled common principle We find no infirmity in the order of the ld. CIT(A) in adopting p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commission, names and addresses of persons from whom such commission was received, etc., the Assessing Officer issued letter to Vijaya Bank to furnish the sources. The Assessing Officer, on an examination of the statement filed by Vijaya Bank found difference between cash deposit and cash book. The assessee also filed representation before the Joint Commissioner of Income Tax under section 144A of the Income Tax Act, 1961 [ Act in short]. The Assessing Officer, in terms of the directions of the JCIT, completed the assessment by making addition on account of cash deposits treating the same as unexplained money under section 69A of the Act. The ld. CIT(A), based on the detailed working of peak credit, restricted the addition to an extent of & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n when an earlier advance is pending. All the transactions are completed within a maximum period of 7 to 10 days. Further it was stated that the assessee does not permit any back log in connection of interest/balance outstanding and it is not necessary to maintain the individual balance of each and every person on any given date as the transaction are completed then and there. 7. We note that having considering the nature of business and submissions made before the ld. CIT(A), it establishes that the ld. CIT(A) satisfied with the business activities of the assessee and collection of cash, deposit in the bank accounts. Further, we note that the ld. CIT(A) reproduced the details of peak credit in page 3 of the impugned order, wherein, he cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act. 9.2 While completing the assessment, the AO has not considered the withdrawals from the bunk accounts. The appellant has contended that the amount of Rs. 5,82,38,126/- is the deposits held by the appellant in various accounts on various dates. The relevant bank accounts submitted by the appellant pursued. The best way to arrive the unexplained money is only by arriving a peak credit. As per the order passed by this office in the appellant's relative case upon the same issue and by the same Assessing Officer in the case of Shri S. Kulanthaian relevant AY 2013-14 in ITA No.285/2015-16 dated 31.01.2017, A.Y.2014-15 in ITA No. 250/16-17 dated 16.10.2017 and A.Y.2015-16 in ITA No.402/2017-18 dated 27.10.2020, it has been held that by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee and this is a well-settled and common principles so adopted. The finding of facts of the Authorities below cannot be said to be perverse or illegal in any manner. .......... .......... Therefore, we are of the opinion that the Appeals filed by Revenue are devoid of merit and they are liable to be dismissed and accordingly, they are dismissed. 9.5 The observation of the Hon ble High Court is respectfully followed in this appeal. 9.6 In the present appeal, the appellant has worked out the peak credit and the deficit balance and the same is computed as Rs. 16,08,071/-. This balance is only unexplained money and it requires to be substituted instead of Rs 5,82,38,126/- as determined in the assessment order. Thus, out of the addit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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