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2016 (3) TMI 961 - AT - Income TaxUnexplained cash deposits in the bank account by adopting peak cash deposits (on 60 days basis) - Held that:- CIT(A) observed that even if it was accepted that peak theory would be valid in this case, because the assessee was in the business of financing; the day to day peak could not be applied in the present case because as admitted by the father of the assessee and the Authorized Representative of the assessee that the loan was disbursed by the assessee to various persons for 2 to 4 months. The CIT(A), therefore, held that if peak theory is to be applied, then the peak has to be worked out on the basis of 60 days; meaning thereby, if a cash withdrawal is made on the first day then, it can be expected to be deposited in the bank account of the assessee on or after 61st day. Similarly, withdrawal of second day could be expected to be deposited back on or after 62nd day. In this background, the CIT(A) rightly directed the Assessing Officer to work out the peak on the above basis and tax that peak amount as unexplained investment of the assessee. Therefore, these reasoned and factual findings of the CIT(A) do not require any interference from our side Addition on account of cash credit - Held that:- This addition in question has been confirmed the CIT(A) in appeal on the ground that the assessee has failed to prove the genuineness of loans from the parties and creditworthiness of other depositors. It is not in dispute that no such proof was furnished before the Assessing Officer but only affidavits from such depositors were produced before the First Appellate Authority which was not admitted by him on the ground that the same was not genuine as per the reasons recorded in the appellate order. Therefore, in our opinion, the CIT(A) has rightly confirmed the addition as unexplained cash credit u/s 68 of the Act because no books of accounts are maintained by the assessee and there were no such details on record which can be verifiable.
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