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2022 (10) TMI 253 - AT - Income TaxAddition u/s.69 towards cash deposits in the bank account - survey u/s.133A - determining the peak credit - As contended before the authorities below that the assessee was carrying on some business outside the books of account, whose proceeds were deposited in the bank account - HELD THAT:- The existence or carrying on of any such business has not been established. When cash is deposited in a bank and thereafter withdrawn and again redeposited, the presumption is that the amount re-deposited came out of the amount withdrawn earlier, unless the AO shows the utilisation of cash elsewhere. In such circumstances, it is only the peak credit which can be charged to tax and not all the deposit entries in the bank account. As such, I set aside the impugned order and remit the matter to the file of the AO for determining the peak credit out of such transactions and make addition for the same in addition to the interest income credited by the bank separately as recorded in the bank statement. Addition towards purchase of plot - AR contended that the purchase of plot should be considered as sourced from the bank withdrawals for which separate addition was made by the AO - HELD THAT:- While disposing of the first issue supra as directed that only the peak credit of the cash deposits and withdrawals should be included in the total income and not all the deposits. The contention of the assessee that Rs.31,990/- should be considered as coming out of the bank withdrawals, cannot be accepted because once the peak credit is taken, the presumption remains that all the amounts withdrawn from the bank were re-deposited. In such a situation, if the assessee makes a claim that a particular amount was utilised elsewhere, then the peak balance has to be adjusted accordingly by increasing it correspondingly. The net effect of the above discussion is that where the peak is added, the investment made by the assessee has to be added separately and it cannot be claimed that the cash re-deposited in the bank after withdrawal was used for purchase of any other asset. Thus we uphold the addition sustained in the first appeal.
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