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TMI Blog2015 (7) TMI 1441X X X X Extracts X X X X X X X X Extracts X X X X ..... eak credit along with profits @ 5% of the sums in question totalling to Rs. 9,02,519/-. Revenue does not file any evidence on record disputing these figures of peak credit as the AO had himself arrived at the said figures (supra). Its sole argument is that once the assessee has not carried out any business activity, there is no evidence that the amount debited from her bank account was available for credit entries in question. We observe that the same forms all the more reason to infer that the amount debited was not utilised elsewhere else than the credit entries in question. The Revenue does not advance any other argument. We uphold the CIT(A) s order under challenge and reject the Revenue s sole substantive ground. - S/Shri G. D. Agarw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 67 lakhs as peak credit. He observed in assessment order that the assessee s source of income in the impugned assessment year was only from other sources and also that there was no business activity at her behest. He accordingly added total credits in cash as well as cheque of Rs. 56,66,052/- as assessee s unexplained investment. 4. The assessee preferred appeal. The CIT (A) has partly accepted her contentions as under : 2. The only grievance of the appellant is against the addition of Rs. 56,66,052/- mad by the A.O. on account of unexplained investment. During the course of assessment proceedings, it was submitted by the appellant that they maintained Saving Bank account No. 101571 and account No. 61138. with Indian Overseas Bank, Surat. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent as no opportunity was given to the assessee in the form of show cause to explain the bank account. It was explained that show cause was issued through order sheet entry dated 26.06.2009 asking the authorized representative of the assessee to show cause why all credits should not be considered as unexplained but no formal show cause was served on the appellant assessee. On merits, it was submitted that :- 2.4) The learned A. O. has grossly erred in calculating the peak amount in the referred case. The learned A.O. has made addition of Rs. 56,66,052/-as follows : , Rs. 16,22,052 total cash deposited during the year Rs. 40,43,382 total of credits other than cash during the year. However, in our instant case as per the bank statement the hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent year or in previous years. The credits in the account therefore have to be considered for determination of unexplained investment of the appellant. From the bank statement, it is seen that cash has both been withdrawn and deposited. Similarly, there are deposits by transfer and payments by cheque /transfer. In such a situation the peak of credit in the bank account alongwith any shortages on cash account is required to be considered as unexplained investment of the appellant. The peak credit in the case of the undisclosed bank account of the appellant is also the opening credit balance on 1.04.2006. The peak therefore pertains to the preceding year and cannot be considered as unexplained investment in this year. This will have to be con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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