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2015 (3) TMI 1278 - AT - Income TaxReopening of assessment - peak credit addition - validity of notice - Held that:- In the instant case, if we accept the contention of the assessee that the Assessing Officer has acted at the behest of the Investigation Wing, then in that case he would have made addition of ₹ 9,83,50,000/- which is as per the reasons for issue of notice u/s.148 for the A.Y. 2002-03. Further, from the letter dated 10-12-2009 by the JCIT, Range-1, Jalgaon to JDIT (Investigation) Jalgaon, we find the JCIT has mentioned that peak determined by the Investigation Wing is incorrect and the peak is coming to negative for which he has requested for further material at the disposal of the Investigation Wing. Therefore it is not a case where the Assessing Officer has acted at the behest of the JDIT. He has acted in a very judicious manner acting independently thus we dismiss the additional ground raised by the assessee. Addition on advances and interest thereon - Held that:- After thoroughly analysing he considered certain transactions which according to him do not appear to be taxable receipts. Such transactions are without any reference to interest or profit on sale and are just financial transactions involving receipts by the assessee and cannot be considered as income for the impugned assessment year. He therefore added these loans for the purpose of working out the peak credit but did not consider the same as income. Similarly, certain transactions represented sale of jewellery which according to him cannot be said as income as such. According to him, only the profit element can be considered as taxable. He accordingly restricted such interest and other income to ₹ 62,51,754/- as against ₹ 82,81,598/- determined by the Assessing Officer. This reasoned finding given by the CIT(A) in our opinion does not suffer from any infirmity and accordingly the same is upheld. The grounds raised on this issue are accordingly dismissed Addition on account of alleged interest received on the unexplained investment - Held that:- After considering the reply of the assessee to such enhancement notice, the Ld.CIT(A) enhanced the income and directed the AO to adopt interest of ₹ 73,31,192/-. Nothing contrary was brought to our notice by the Ld. Counsel for the assessee against the said calculation. Under these circumstances, the third issue raised by the assessee in the ground is dismissed. The appeal filed by the assessee for this year is accordingly dismissed.
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