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2022 (8) TMI 759 - AT - Income TaxPeak credit Theory - Addition u/s 68 - Unexplained cash credit - application of theory of peak credit on cash receipts and cash withdrawals - HELD THAT:- Tribunal in assessee’s group case [2017 (4) TMI 1441 - ITAT CHENNAI] upheld the application of theory of peak credit on cash receipts and cash withdrawals. Subsequently, the revenue’s appeal against this decision has not been admitted by Hon’ble High Court of Madras. We find that similar facts exist in the present case and Ld. CIT(A) has rightly applied this case law to adjudicate the issue. Therefore, no infirmity could be found in the impugned order to that extent. The peak credit has to be worked out properly by considering only cash receipts and cash withdrawals and the same is required to be verified by Ld. AO. The same is the plea of Ld. Sr. DR who has submitted that peak credit was not made available to Ld. AO and therefore, modification in directions is required. We find that the assessee has made deposited cash and withdrawn the same throughout the year. Accepting the plea of Ld. Sr. DR, the working of the peak credit shall be furnished by the assessee to Ld. AO who is directed to consider the same and restrict the addition to the extent of peak credit of cash receipts and cash withdrawals. The cheque entries shall be separately examined and readjudicated. The directions given in the impugned order stand modified to that extent.
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