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2005 (2) TMI 103 - ALLAHABAD HIGH COURTUnexplained cash credit - Whether, the Appellate Tribunal was legally correct in holding that only the amount of peak credit should be added as unexplained cash credit under section 68 of the Income-tax Act, 1961? - HELD THAT:- We find that in respect of the squared up accounts of the two depositors, mentioned, the Assessing Officer himself had taken the peak credit as unexplained deposit and added the same u/s 68 of the Act. So far as the remaining deposits are concerned, there was no transaction between the depositors and the respondent-assessee. This court in Income-tax Reference, Bhaiyalal Shyam Behari v. CIT [2005 (1) TMI 424 - ALLAHABAD HIGH COURT], has held that the principle of peak credit is not applicable in case where the deposits remained unexplained u/s 68 of the Act. It cannot apply in a case of different depositors where there has been no transaction of deposits and its repayment between a particular depositor and the assessee. Respectfully following the same, we are of the considered opinion that the Tribunal was not justified in directing the Assessing Officer to take the peak credit for the purposes of section 68 of the Act. We accordingly answer the question referred to us in the negative, i.e., in favour of the Revenue and against the assessee. There shall be no order as to costs.
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