Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (5) TMI 1101 - AT - Income TaxAddition on account of assessee’s saving bank account - peak amount of entries - Held that:- We find that the fact that SB account of the assessee with “SNCB” was not disclosed in the account book of the assessee nor it was disclosed to the department, could not be controverted on behalf of the assessee. However, the action of the Department in adding the entire aggregate of the credit entries in the said bank account is not in accordance with the settled position of law. In such a case, only the peak amount of entries could be added as income in the hands of the assessee. Since the account of the assessee was undisclosed to the department and the peak amount is addable as income in the hands of the assessee, the plea of the Revenue that the assessee should prove the co-relation between the credit and debit entries in the said bank account, is not sustainable. In the facts and circumstances of the case, and in accordance with the settled law, we direct the AO to determine the peak amount in the said SB Account No.1001926 with “SNCB” and restrict the addition to the peak amount only, and this part of the ground of the appeal of the assessee is partly allowed. With regard to the other addition of ₹ 40,000/- on account of inflation in opening stock, no argument was addressed on behalf of the assessee before us, and accordingly, the ground of the appeal of the assessee, with regard to the issue of this addition of ₹ 40,000/- on account of inflation in opening stock figure is dismissed. - Decided partly in favour of assessee.
|