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2016 (8) TMI 72 - AT - Income TaxAdditions under ‘peak credit theory’ - Held that:- We find lot of force in the alternative argument of the assessee that the peak credit should be worked out after considering all the transactions in the undisclosed bank account and the peak credit so arrived should be treated as undisclosed income. We find that the Ld. AO took ‘peak deposit’ in the bank account acceptable under peak credit theory which, in our opinion, is against the spirit of such theory. Adoption of peak credit balance after considering all the transactions in the bank account and adding the same as undisclosed income of each year would meet the ends of justice. Accordingly, we deem it fit and proper in the interest of justice and fair play to set aside this issue to the file of the Ld. AO to determine the undisclosed income based on the peak credit workings as directed above. The assessee is directed to provide the workings of peak credit as per above directions and the Ld. AO is directed to verify the veracity of the said workings for both the assessment years and determine the undisclosed income of the assessee accordingly. The Ld. AO is also directed to eliminate the commission income offered by the assessee in the return of income in view of the directions contained above for determination of income of the assessee for both the assessment years. - Decided in favour of assessee for statistical purposes.
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