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2017 (3) TMI 1712 - ITAT MUMBAIAddition under peak credit available with the Appellant by treating the same as non-genuine - Held that:- Latest judgement passed in the case of “H. R. Mehta versus ACIT” Mumbai (2016 (7) TMI 273 - BOMBAY HIGH COURT) wherein held that the assessing officer should have provided the assessee materials used against him apart from providing him an opportunity to cross examine deponent’s whose statements were relied upon. Admittedly in this case no material was provided by the AO to the assessee which was used against him and nor any opportunity to cross examination was provided. Since we have already concluded that the purchases made by the assessee could not be termed as bogus therefore peak credit method applied by the AO in the case of assessee is also not sustainable moreover, the theory of peak credit even otherwise does not apply to the transactions which are already appearing in the books of accounts and not rejected by the assessing officer. The theory of peak credit applied by the assessing officer and confirmed by the CIT (A) is not sustainable in the eyes of law. Thus in the above circumstances we hold that the additions made by AO and sustained by CIT (A) are liable to be deleted. - Decided in favour of assessee.
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