The case pertains to the addition of undisclosed income u/s 69A ...

Undisclosed income addition upheld by applying peak credit method for cash deposits.

Case Laws Income Tax

September 17, 2024

The case pertains to the addition of undisclosed income u/s 69A of the Income Tax Act, wherein the peak credit method was applied. The Commissioner of Income Tax (Appeals) [CIT(A)] was satisfied with the assessee's business activities and cash collections deposited in bank accounts. The CIT(A) reproduced the details of the peak credit, considering opening balances in bank accounts, cash, advances, income from money lending business, and drawings. The CIT(A) determined the unexplained amount after deducting the net fund available from the peak credit. The CIT(A) relied on the decision of the Madras High Court in the case of PCIT v. S. Anbukannan, which upheld the peak credit method for addition of undisclosed income, and the ITAT Chennai's order in the case of S. Kulanthaian, who is a relative of the assessee. The ITAT found no infirmity in the CIT(A)'s order and dismissed the Revenue's appeal.

View Source

← Previous Next →

The case pertains to the addition of undisclosed income u/s 69A ...

Undisclosed income addition upheld by applying peak credit method for cash deposits.

Case Laws Income Tax

September 17, 2024

You may also like:

The ITAT Delhi held that the CIT(A) erred in presuming all cash deposits as business receipts u/s 44AD. The CIT(A) treated deposits as business receipts and applied 8%...

Addition on unexplained cash deposit - source of cash - where no books of accounts are maintained the peak theory is best method to assess the actual income earned from...

Addition u/s 68 - Addition as income of brokerage/commission @ 2% of cash deposits as accommodation entry provider - onus to prove - The High Court concluded that the...

The ITAT considered the issue of cash deposits and other credits in the assessee's saving bank account. The tribunal noted that the cash deposits were not made in a...

Addition u/s.69 towards cash deposits in the bank account - determining the peak credit - where the peak is added, the investment made by the assessee has to be added...

Addition u/s 69A - unexplained income - cash deposits made into bank account during demonetization period - assessee neither furnished stock summary nor bills/vouchers...

Addition u/s 69A - Addition of cash deposits made by the assessee during the demonetization period - The Tribunal examined the legality of the assessment order, the...

Unexplained investment u/s 69 - cash deposit - the alleged transactions of cash deposits and corresponding entries of cheque issued were not in the nature of any...

Key legal issues and the Tribunal's holdings: Agricultural land sold by assessee situated beyond municipal limits cannot be treated as capital asset u/s 2(14). Addition...

Addition u/s 68 - unexplained cash credit - The assessee had to discharge the primary onus in that regard. The peak credit worked out by the assessee, on the basis that...

Addition made u/s 68 of the Act – Applicability of peak credit theory – The peak credit theory is not applicable - there are deposits in cash but as against the said...

Income from undisclosed sources - addition of agricultural income - Assessment of agricultural income declared by the assessee for various assessment years was...

Additions against Cash deposits made during demonetization period in specified bank notes - assessee has been consistently holding huge cash balance which meets the...

The assessee received cash credits which were treated as unexplained income u/s 68 by the Assessing Officer (AO). However, the Commissioner of Income Tax (Appeals)...

Unexplained money u/s 69A read with Section 115BBE(1) - no explanation regarding source of cash deposit in savings account - case selected for limited scrutiny, thus...

Quick Updates: