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2015 (3) TMI 1207 - AT - Income TaxAddition towards unexplained cash deposits in bank - income from undisclosed sources - Held that:- We have seen a copy of the bank account maintained by the assessee with ICICI Bank Ltd., from which it is apparent that there are several items of deposits and withdrawals. The Assessing Officer has simply picked up the deposit side of the pass-book and made the addition for all the deposits made in the bank accounts, ignoring that there are several withdrawals also. This course of action adopted by the Assessing Officer in making the addition for all the deposit entries in the bank accounts, has no sanction of law. If there are certain deposits and withdrawals as well and there is nothing in the assessment order to co-relate these withdrawals with any investments made by the assessee, the presumption is that such withdrawals were utilized for making deposits. In such circumstances, the making of addition to the extent of peak credit is a more rational way rather than all the deposit entries. We, therefore, set aside the impugned order on this score and send the matter to the file of Assessing Officer for making an addition for an amount equal to peak balance in these bank accounts. Needless to say, the assessee will be allowed a reasonable opportunity of being heard in such fresh proceedings. - Decided in favour of assessee for statistical purposes.
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