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2012 (9) TMI 149 - ITAT, COCHINBlock assessment - seizure of unexplained cash - various cash deposits and subsequent withdrawals from Bank account - assessee contending for assessment of income at peak credit and not on entire amount of deposits found in the bank accounts - also seized cash is explained to be source of various cash deposits - Held that:- During the course of assessment proceedings, the assessee has changed his stand and stated that he was carrying on the business of trading in gold biscuits and the transactions in its bank account represented such trading. However, assessee has failed to bring on record any material to substantiate his changed stand. Also, possibility of rotation of funds cannot be discounted with. The tax authorities, cannot simply ignore the withdrawals made by the assessee. Accordingly, it would be justifiable to assess the peak credit of deposits as the income of the assessee. Matter set aside to file of AO for determining the peak credit Amount of peak credit become taxable due to the legal fiction contained in section 68, 69 etc. due to the failure of the assessee to properly explain the bank transactions. It is the responsibility of the assessee to show that the said amount was available with him and it was kept idle for more than nine months. Hence, income declared by the assessee for the AY 1997-98 to 2002-03 cannot be considered as a source for the amount of Rs.65.00 lakhs seized by the police officials - Decided partly in favor of assessee.
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