Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (8) TMI 797 - AT - Income TaxUnexplained cash credit - CIT-A accepting the Peak Balance Theory put forth by the assessee - assessee pleaded that it was engaged in money lending business which was rejected by revenue - whether method of peak credit was rightly adopted for addition of the alleged undisclosed income of the assessee? - HELD THAT:- 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 We find that the assessee has made deposited cash and withdrawn the same throughout the year.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 re-adjudicated. The directions given in the impugned order stand modified to that extent.
|