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2017 (7) TMI 912 - ITAT DELHIUnexplained cash deposit in bank account - Peak credit addition - Held that:- From the documents produced by the assessee, the A.O found that agricultural receipt in the form of 6R only contained ₹ 1,29,600/- related with the assessee Shri Jailly Goraya. He, therefore, gave credit to this extent and made addition of ₹ 3 lakhs which has been upheld by the ld. CIT(A). Although it is the argument of the ld. AR that no addition can be made since the entire income is from agriculture, we find no merit in the same. From the copy of assessment order, it is notice that apart from agricultural income, the assessee has income from leasing of car. Therefore, it cannot be said that the entire income of the assessee is from agriculture. Since the assessee had explained before the A.O that the source of deposits of ₹ 4,29,000/- is out of agricultural produce of ₹ 2,38,500/-, we accept the source to this extent as explained. The balance amount of ₹ 1,90,500 is sustained. So far as the addition of ₹ 78,40,770/- made by the A.O the assessee cannot explain the non disclosure of the said bank account as ignorance of law or that he was not conversant with the intricacies of accountancy or tax proceedings. However, it is also a fact that the said bank account contains both deposits as well as withdrawals. It is an accepted principle that when the assessee is unable to explain the deposits in a particular bank account, the entire deposits cannot be added to the total income and only the peak credit has to be made when there are both cash deposits and cash withdrawals. In the instant case admittedly, there were both cash deposits as well as cash withdrawals on various dates. Therefore, the ld. CIT(A), in our opinion, was fully justified in sustaining the peak credit value for the addition u/s 69A of the Act. Accordingly, the same is upheld. Appeal filed by the assessee is partly allowed
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