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2016 (8) TMI 957 - HC - Income TaxAddition of unexplained cash credit u/s. 68 - Held that:- The materials on record would suggest that admittedly, the assessee had maintained two bank accounts, not disclosed to the Revenue authorities. In such bank accounts, multiple cash deposits were made by the assessee from different places. The assessee initially explained that such deposits were made by his friends and he, in turn, would withdraw the amounts at Ankleshwar and handover the cash to the friends for a small commission. He, however, refused to supply details of such friends. Before the Tribunal, however, the assessee adopted the entirely novel theory of being engaged in the business of chemical and the deposits being part of his business transaction. First and foremost, this theory of the assessee's of the amounts belonging to his friends would be incongruent. If these amounts were established to be belonging to the friends of the assessee, for whom, he merely deposits the sums and withdraw at their requests for a small commission, the question of applicability of peak credit would not arise. When the assessee failed in his first attempt, he came up with the novel theory of the amounts being for the purpose of his chemical business. This theory probably was pressed in service to enable the assessee to seek the benefit of principle of peak credit. Before the Revenue authorities, this contention was not even raised. No material was produced regarding the same. Considering such circumstances, we do not find any error in the view of the Tribunal. The decision in case of Income Tax Officer, Ward 9(2), Surat vs. Shri Indrajeet Zandusing Tomar [2015 (2) TMI 1174 - ITAT AHMEDABAD ] was rendered by the Tribunal when it was found that the deposits and withdrawals were made in course of his business which the assessee run as a proprietary concern by the name “Rakesh Fashion”. - Decided against assessee
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