TMI Blog2014 (2) TMI 464X X X X Extracts X X X X X X X X Extracts X X X X ..... creditworthiness of these lenders. It has to be established by yield and availability of such money with them to lend that too without interest - The assessee was in a government service in the railway department - These amounts were not utilized during the financial year for any purpose - No one will raise loan just to deposit in the SB A/c with the bank - The CIT Appeal was justified in restricting the addition to the peak amount - He has rightly directed the AO to restrict the addition to the peak amount - only the peak amount of the credit entries in the bank account of assessee can be added to the income of the assessee supports the order of the CIT Appeal – Decided against assessee. - ITA No.4907 /DEL/ 2010, ITA No. 4883/DEL/2010 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , which the assessee is not ready to disclose. Under the circumstances, the AO is justified in bringing to tax the unexplained cash deposits in the bank account as income from other sources of the assessee. 8. Now the issue that remains to be adjudicated is whether the entire cash deposits have to be treated as income undisclosed sources without giving any benefit for cash withdrawals or peak investment of cash deposits is to be taken. Having regard to the facts and circumstances of the case, as enumerated above, it is deposits as the income from undisclosed sources of the assessee. The AR furnished a statement of 'peak investment' of cash deposits as derived from the bank account of the assessee in the hearing dated 24.8.2010 wherein it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose for which they have entered into. 3. On the facts and in the circumstances of the case, the ld. CIT(A) has erred in adopting 'peak investment' when the assessee has only income from 'salary'. 4. On the facts and in the circumstances of the case, the ld. CIT(A) has erred in law and facts in deleting the addition of Rs. 8,72,343/- by not considering the following judgments, which were relied upon by the A.O. Covered by :- a. Roshan Di Hatti Vs. CIT (1977) 107 ITR 938 (SC). b. CIT Vs. M. Ganapathi Mudaliar (1964) 53 ITR 623(SC). c. CIT Vs. R.S. Rathore (1995) 212 ITR 390 (Raj.) 5. That the appellant craves for the permission to add, delete or amend the ground of appeal before or at the time of hearing of appeal." 3. While ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vs. Shri Inder Singh in ITA No. 3469/Del/2010 dated 16.11.2010, Moongipa Investment Ltd. Vs. ITO reported in 30 taxman.com 113 Delhi Tribunal and ACIT Vs. Baldev Raj Charla 121 TTJ 366 Delhi. 4. On the other hand, the Ld. DR submitted that the CIT Appeal was not justified in directing A.O. to make addition of peak investment in bank A/c. The assessee has failed to give any satisfactory explanation with regard to the cash deposits and withdrawal made from the bank account. No credit should be given to assessee for withdrawals as these amounts might have been spent somewhere. These alleged loans stated to have been taken by the assessee are not genuine. The creditworthiness of these persons is not proved. The assessee has completely failed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... son from whom, the money was received. Assessee had filed photo identities of these persons. These documents can establish that such person were in existence but it does not prove that why these persons have given such huge amount of loan to assessee without interest. As per confirmation all these loans were interest free. Secondly, assessee have to establish the capacity to lender and thirdly, the transaction should be genuine. Simply land holding shall not prove the capacity or creditworthyness of these lenders. It has to be established by yield and availability of such money with them to lend that too without interest. The assessee was in a government service in the railway department. He has not disclosed for what purpose, this loans ..... X X X X Extracts X X X X X X X X Extracts X X X X
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