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2015 (11) TMI 394 - ALLAHABAD HIGH COURTPeak of unexplained debit - Held that:- 'Peak credit' theory-One of the commonest defects of an assessee, where a single credit or number of credits appear in the books in the account of any particular person side by side with a number of debits is that they should all be arranged in serial order, that a credit following a debit entry should be treated as referable to the latter to the extent possible and that, not the aggregate but only the 'peak' of the credit should treated as own explained. To give a simple example, suppose there are credits in the assessee's book in the account. A or ₹ 5,000 each on October 1, 1990, and again on November 5, 1990, but there is a debit by way of repayment shown on October 27, 1990, the expla nation will be that the credit appearing on November 5, 1981, has or could have come out of the withdrawal/repayment on October 27, 1981. This plea is generally accepted as it is logical and acceptable (whether the creditor is a genuine party or not), provided there is nothing in the material on record to show that a particular with drawal/repayment could not have been available on the date of the subsequent credit. A refinement or extension of the plea occurs where the credits appear not in the same account but in the accounts of different per sons. Even then, if the genuineness of all the person is disbelieved and all the credits appearing in the different account are held to be the assessee's own moneys, the assessee will be entitled to set off and a determination of the peak credit after arranging all the credits in the chronological order. - Decided against Revenue.
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