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2018 (8) TMI 2117 - AT - Income TaxUnexplained bank deposits - deposits through undisclosed sources - sufficient time lag between the dates of withdrawal of cash from the bank account and the dates of deposits - apply the peak credit theory or not? - what if the deposit of money in the bank account is preceded by withdrawal of money from the very same bank account? - HELD THAT:- It is seen that the cash deposits in the bank account are preceded by withdrawal from the very same bank account. The cash flow statement filed by the Assessee explaining availability of cash on the various dates of deposit of cash in the bank account has not been disbelieved by the Revenue authorities. As in the case of S.R. Ventakaratnam Vs CIT, Karnataka-I & Others [1980 (8) TMI 73 - KARNATAKA HIGH COURT] has held that once the Assessee discloses the source as having come from the withdrawals made on a given date from a given bank, it was not open to the revenue to examine as to what the Assessee did with that money and cannot chose to disbelieve the plea of the Assessee merely on the surmise that it would not be probable for the Assessee to keep the money unutilized. If the revenue wants to disbelieve the plea of the Assessee then it must show that the previous withdrawal of cash would not have been available with the Assessee on the date of deposit of cash in the bank account. The AO and CIT(A) have proceeded purely on assumption and surmises that cash would not be lying idle with the Assessee for such a long time - Decided in favour of assessee.
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