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2017 (4) TMI 1441 - AT - Income TaxAddition u/s 69A - peak credit addition - cash deposits as well as cash withdrawals in his bank account with Axis Bank accounts with Pudukkottai and T. Nagar Branch - HELD THAT:- AO had listed out the major transactions in assessment order, a date wise analysis of the bank accounts were not done. Assessee can always say that cash deposits in the bank account had come out of an earlier cash withdrawal as long as the time interval between the withdrawals and deposits are not so significantly substantial to disbelieve the source. Whether the assessee was carrying on any money lending business, has no relevance when an assessment is made considering the amounts deposited in the bank accounts. In our opinion cash deposits alone cannot be the subject of an addition ignoring the cash withdrawals. Hence, finding of CIT (Appeals) that peak credit alone could have been considered for the addition cannot be faulted. In so far as transactions other than cash are concerned, it may be true that assessee was earning commission from money lending. CIT (Appeals) that assessee was earning 1% commission of the deposits in the bank account was only a surmise. Even if there were some commission earnings it gets subsumed in the peak credit considered for addition. The further addition was not justified in the fact and circumstances of the case, such addition stands deleted.
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