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2014 (6) TMI 804 - ITAT COCHINUnexplained income u/s 69 of the Act - Peak credit balance – Held that:- The AO has accepted the contentions of the assessee that the past withdrawals might have been used for making future deposits - the AO has computed peak credit of the bank account and determined that the balance available in the bank account as on 09.11.2004, i.e. Rs.12,73,150/- is the peak amount and assessed the same - the assessee has been declaring income from job works over the years and it is stated that the assessee has not maintained regular books of account for this business - The possibility of making savings out of job works business cannot be altogether ruled out - the AO has assessed the “peak credit amount” shows that he has also accepted the theory of human probabilities, i.e., the AO has accepted the fact that the past withdrawals were utilised to make future deposits, which is a normal human behavior. The claim of the assessee that he has used the withdrawals made in the FY 2003-04 also for making deposits in the FY 2004-05 should be accepted - the claim that he was having savings out of his past income could not also be ruled out - the claim that the gold stock was converted into cash and then reconverted into gold stock is hard to believe - assessee may be given credit for the claim of past savings and for withdrawals made from the bank account in the FY 2003-04 - if the amount available with the assessee as on 1.4.2004 out of past savings and also from out of bank withdrawals made in FY 2003-04 is estimated at Rs.6.00 lakhs - the AO is allowed credit of Rs.6.00 lakhs and assess the balance amount u/s 69 of the Act – thus, the order of the CIT(A) is modified – Decided partly in favour of Assessee.
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