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2021 (2) TMI 897 - AT - Income TaxUnexplained cash deposits - peak credit theory - HELD THAT:- We find no force in assessee’s explanation in entirety. The fact remains neither he has submitted all details of his family members business(es) nor has he denied the fact that the above bank account is maintained in his sole name only. Coming to the point that these deposits are in business nature only, the assessee has failed to prove even a single business receipt in the corresponding span of time in the relevant previous year. We thus find no reason to reverse the impugned addition. As argued that even if impugned addition is to be confirmed in principle, the same must be restricted to peak amount only going by the assessee’s bank statements - This clinching fact has gone unrebutted from the Revenue’s side since assessee’s paper book has also seen multiple number of withdrawals which sufficiently highlight the fact that the impugned deposits are an admixture of credit as well as debit entries. We therefore direct the Assessing Officer to restrict the addition amount to peak amount as per assessee’s bank accounts. Amount was part of closing balance as on 31.3.2011 and opening balance as on 01.04.2012 shall also be excluded from impugned addition - As per hon’ble Bombay high court’s judgement in Ivan Singh vs. ACIT [2020 (2) TMI 850 - BOMBAY HIGH COURT] holds that the statutory expression “previous year” incorporated in Sec.68 of the Act has to be taken as the relevant previous year in issue only. We thus direct the Assessing Officer to finalise the consequential computation in foregoing terms. Assessee’s appeal is partly allowed for statistical purposes in above terms.
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