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2022 (12) TMI 218 - ITAT CHENNAIUnexplained cash deposits - income from undisclosed sources - assessee has submitted that the details of cash deposits which were made to pass the cheques issued by the assessee which was in an accommodative nature have been provided to the Assessing Officer as well as the CIT(A) - CIT(A) estimated and adopted 80% of effective interest rate i.e., 42% (52 x 0.8) of gross cash deposited is considered as income of the assessee. Balance 20% of estimated interest has been given as relief to the assessee and would include therein any claims on account of peak credit - HELD THAT:- Considering the complete details furnished before the authorities below, we are of the considered opinion that the CIT(A) has estimated and adopted the effective interest rate at an higher side. Accordingly, we direct the AO to adopt 50% of effective interest rate i.e., 26% (52x0.5) of gross cash deposited shall be considered as income and 50% of estimated interest has been given as relief to the assessee and would include therein any claims on account of peak credit. As a result, out of the cash deposit of ₹.2,17,49,200/-, 26% being ₹.56,54,792/- is sustained as income in the hands of the assessee and the assessee get a relief of ₹.1,60,94,408/-. Appeal filed by the assessee is partly allowed.
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