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2014 (2) TMI 464 - AT - Income TaxAddition made u/s 68 of the Act - Undisclosed cash deposits – Held that:- The confirmations filed are on stamp papers but these are not verified by any notary or other authority - The assessee has not disclosed the purpose for which these loans were raised - Loan stated to have been raised without any purpose - The amount was not utilized for any purpose during the year - No evidence had been placed on record to show that such amount unutilized for any purpose in future - Nothing on record to show the repayment of these loans - the true nature of these transaction remains to be established - Simply land holding shall not prove the capacity or creditworthiness of these lenders. It has to be established by yield and availability of such money with them to lend that too without interest - The assessee was in a government service in the railway department - These amounts were not utilized during the financial year for any purpose - No one will raise loan just to deposit in the SB A/c with the bank - The CIT Appeal was justified in restricting the addition to the peak amount - He has rightly directed the AO to restrict the addition to the peak amount - only the peak amount of the credit entries in the bank account of assessee can be added to the income of the assessee supports the order of the CIT Appeal – Decided against assessee.
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