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2013 (5) TMI 588 - AT - Income TaxUndisclosed deposits in the bank account - addition u/s 69 - assessee is a shares dealer and earns income of interest - reopening of assessment - Held that:- Assessee, who is maintaining proper books of account was having a savings account which was his personal account but utilized for trading in shares in so far as the shares were held in assessee's personal name and the refunds were to be in the personal name and not in the name of its business. The business income was rendered to tax by the assessee from share trading was to be assessed and the information was received with respect to cash deposit in the personal account. As the above was considered in the immediately preceding assessment year as well for the purpose of taxation on the basis of peak credit and has been accepted by the assessee to not involve further litigation it was the AO's duty to telescope the taxation of the same, in so far as the debits and credits have led to depletion in holding the assets in the form of investment in bank as on 31st March, 2005. AO is directed to accept the peak amount as brought on record by the asessee in the impugned assessment year for taxation after giving telescope effect that a part thereof has already been taxed in the immediately preceding assessment year when the bank balance in the said account as on 31st March, 2005 stood at Rs.1,22,000/- only & to verify the balance as per the bank statement in the impugned assessment year and reduce the amount to be taxed after determining the peak credit in the impugned assessment year, the amount of difference between the opening and closing balance in the said bank, which amount should be less than the peak credit determined and taxed and accepted by the assessee for the A.Y.2004-05 - appeal of the assessee partly allowed.
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