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TMI Blog2016 (7) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... ct? 2. Whether on facts and in law, the Tribunal is right in confirming order of CIT(A) which confirms addition of Rs. 12,55,501/- as unaccounted income from undisclosed sources? 3. Whether on facts and in law, the Tribunal is right in confirming addition without considering case laws and submission filled? 4. Whether on facts and in law, the Tribunal is right in confirming entire deposits in the bank accounts as income of the assessee? 5. Whether on facts and in law, the Tribunal is right in not accepting alternate plea of assessee to tax peak credit of the bank accounts?" 2. Though multiple questions are framed, the issue is only one viz. of the additions of Rs. 13.22 lacs and 12.55 lacs made by the Assessing Officer and confirmed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... source of credits in his bank account. From the above reproduced statement of the assessee in translated form, it is crystal clear that the assessee did not disclose the source of cash deposits made in the HDFC Bank and also the purpose of withdrawals through ATM. The assessee simply said that the cash was deposited in his account by his friends. However, he refused to divulge the identity of such so called friends. The statement of the assessee cannot be taken on face value because on verification of the bank statement, it is revealed that cash has been deposited from various cities across the country right from Silliguri in West Bengal to Madurai in Tamil Nadu. It is unbelievable that the assessee had such a large network of friends. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee does not place any supportive evidence as well by way of relevant books and accounts maintained with his so called friends/customers engaged in chemicals business. We reiterate that it is open for an assessee to tender an explanation along with cogent evidence in support thereof is such kind of proceedings. However, the only limitation is that the same must have element of genuineness and creditworthiness to further buttressed by identity of the parties concerned. No such course of action has been adopted in the instant case. The assessee's next argument of having charged Rs. 500/- to Rs. 1000/- in each case also suffers from the same lacuna of cogent evident. We find no substance in his argument challenging the impugned addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal failed to apply the peak credit principle and taxed the entire cash credit. He submitted that under identical circumstances, the Tribunal in case of Income Tax Officer, Ward 9(2), Surat vs. Shri Indrajeet Zandusing Tomar, had given the benefit of peak credit which judgement was upheld by the High Court. 6. The materials on record would suggest that admittedly, the assessee had maintained two bank accounts, not disclosed to the Revenue authorities. In such bank accounts, multiple cash deposits were made by the assessee from different places. The assessee initially explained that such deposits were made by his friends and he, in turn, would withdraw the amounts at Ankleshwar and handover the cash to the friends for a small commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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