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2018 (9) TMI 339 - AT - Income TaxAddition on the basis of peak credit theory - Held that:- All the details of cash deposits to the tune of ₹ 30,13,800/- is available and co-relates with the ledger account and fully explainable because the same have been routed through cash book maintained by the assessee. AO has taking into consideration the debit as well as credit entries for applying peak credit theory which is not sustainable, therefore, the observation of the Ld. CIT(A) to the extent that, in the absence of documentary evidences and clarification in respect of various cash deposits amounting to ₹ 30,13,800/- in the Bank Account of the assessee culminated into rightly assessed income of the assessee after taking into account is peak credit, is contrary to the facts and documents on record and hence can not be sustained. Even otherwise, the gross turn over o the Asseeee has also been accepted by the department in subsequent assessment year without deduction. DR has not refuted the claim of the assessee by placing on record any contrary material and/or pointing out any defect in the ledger account and the bank statement of the assessee. Thus addition to be deleted - Decided in favour of assessee
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