TMI Blog2015 (7) TMI 937X X X X Extracts X X X X X X X X Extracts X X X X ..... cient to apply peak credit theory for the purpose of making addition on account of cash deposits found to be made in the bank account of the assessee with Axis Bank, and as rightly concluded by the learned Commissioner, the order passed by the Assessing Officer under S.143(3) making addition by applying wrongly the peak redit theory without enquiring in to all the relevant aspects was erroneous as well as prejudicial to the interests of the Revenue, calling for revision under S.263. The direction given by the learned Commissioner to the Assessing Officer in his impugned order is very specific to reassess the income for the year under consideration after carrying out necessary enquiries in his order. It is thus not a case where the learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same, addition of ₹ 5,90,884 was made by the Assessing Officer to the total income of the assessee on this issue in the assessment completed under S.143(3) vide order dated 12.12.2011. 3. The Record of assessment made by the Assessing Officer under S.143(3) was subsequently examined by the learned Commissioner and on such examination, he was of the view that the order passed by the Assessing Officer under S.143(3) suffered from the following errors which were prejudicial to the interests of the Revenue. AIR information reveals that assessee had a SB account with Axis Bank and deposited cash to the tune of ₹ 17,06,000 during the previous year under consideration. The details available on record indicate that the sourc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Assessing Officer for the purposes of making the addition. It was contended that this aspect is therefore, was duly verified by the Assessing Officer and on such verification, the addition was made to the extent of peak credit. It was contended that there was thus no error in the order of the Assessing Officer as alleged by the learned Commissioner in the notice issued under S.263. This contention of the assessee was not found acceptable by the learned Commissioner for the following reasons given in paragraph 5.2 of the impugned order- 5.2 It is seen from the assessment records of the assessee that the AO has not examined the sources for deposits the SB Account or even called for the details of the transactions found in the cash bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1961 based on the findings. For the reasons given above, the learned Commissioner held that the order passed by the Assessing Officer under S.143(3) was erroneous as well as prejudicial to the interests of the Revenue and setting aside the same, he directed the Assessing Officer to reassess the income of the assessee for the year under consideration after carrying out necessary enquiries on the lines discussed by him in the impugned order. Aggrieved by the order of the learned Commissioner, assessee has preferred this appeal before the Tribunal. 5. The learned counsel for the assessee, at the outset, invited our attention to the copy of cash summary prepared and furnished by the assessee before the Assessing Officer, as placed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned order passed by the learned Commissioner under S.263. He submitted that there was a clear failure on the part of the assessee to explain the source of deposits found to be made by him in the bank account maintained with Axis Bank. He contended that the source of deposit was not substantiated by the assessee and therefore, there was no justification on the part of the Assessing Officer to make addition by applying peak credit theory. He invited our attention to the copy of the cash summary prepared and furnished by the assessee before the Assessing Officer and submitted that the source of cash receipts/inflow shown therein was not explained at all even in the cash summary. He contended that peak credit theory itself was wrongly appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o 35 of the assessee s paper-book. A perusal of the same however, shows that there were hardly any cash withdrawals made by the assessee from the said account. The cash summary prepared and furnished by the assessee also does not indicate the source of cash receipts/inflow shown therein on various dates. In my opinion, the information and material furnished by the assessee before the Assessing Officer therefore, was not sufficient to apply peak credit theory for the purpose of making addition on account of cash deposits found to be made in the bank account of the assessee with Axis Bank, and as rightly concluded by the learned Commissioner, the order passed by the Assessing Officer under S.143(3) making addition by applying wrongly the peak ..... X X X X Extracts X X X X X X X X Extracts X X X X
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