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2017 (6) TMI 871 - AT - Income TaxAddition on unexplained cash deposit - source of cash - peak theory applicability - Held that:- We find that there are four bank accounts of the assessee viz : two are with BOB at Vidhisha , one is BOB Habibganj, and other one is with Axis Bank. It is noticed that the assessee has made withdrawal of cash from one bank account and same is claimed to have been deposited with other bank account in cash. The assessee has filed cash flow statement in respect by merging all four accounts therein which explains the cash deposits. The peak amount as per cash flow statement comes to NIL. However, if we considered the individual bank account and cash deposit therein , then there would be some amount on account of peak, therefore, in such a case where no books of accounts are maintained the peak theory is best method to assess the actual income earned from such transactions. We find it appropriate to send this issue back to the file of the AO to examine the cash flow statement in the light of explanation as offered in respect of each and every entry and peak theory. The will calculate the peaks of each bank accounts separately. Addition as investment in property - Held that:- We find that the assessee had withdrawn a sum of ₹ 1,50,000 as reflected as Paper Book Page No. 42 of cash flow statement. Out of this an amount of ₹ 35,000 was paid in cash on ₹ 49000 was paid in cash on towards purchase of property. Thus, the source of cash payment of ₹ 84,000 is explained. Hence, addition of ₹ 84,000 is deleted. This grounds of appeal is allowed.
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