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2011 (4) TMI 1434 - ITAT AHMEDABAD

2011 (4) TMI 1434 - ITAT AHMEDABAD - TMI - ITA No.2425/Ahd/2009 - Dated:- 29-4-2011 - Shri G.D. Agarwal, Hon ble Vice-President (AZ) And Shri T.K. Sharma, Hon ble Judicial Member. Appellant by : - Shri K Madhusudan SR-DR ORDER PER T.K. Sharma, Judicial Member:- This appeal by the Revenue is against the order dated21-05-2009 of Commissioner of Income-tax (Appeals)-III, Surat directing the Assessing Officer to treat the peak balance of the bank account as the assessee s income, instead of the addi .....

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observed that assessee failed to furnish bank statement. Therefore a copy of bank statement was directly obtained from the bank. On perusal of bank statement the AO noticed that assessee has made deposit of ₹ 32,83,310/- out of which ₹ 29,67,725/- were made in cash and remaining amount was through cheques. AO treated the whole credit as appearing in the bank statement as unexplained deposit since the assessee failed to produce an iota of information about the said bank account. On a .....

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DR appeared and pointed out that this decision of Ld. CIT(A) directing the Assessing Officer to treat peak balance of the assessee s bank account as assessee s income is not acceptable because the order of AO was based on right footing placing reliance of enormous case laws. He also pointed out that during the course of assessment proceedings, AO has granted many opportunities to explain the deposits as appearing in the bank statement. The said bank consist cheque entered also which were not exp .....

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which no explanation was given by the assessee. Finally, the Ld. DR pointed out that profit of such unaccounted business was also not taxed. Since the assessee was not co-operating during the course of assessment proceedings, the entire deposits appearing in the bank account are to be considered as unexplained cash credit in the hands of the assessee. To sum up, Ld. DR contended that addition of ₹ 32,83,310/- made by Assessing Officer be restored. 5. After hearing the Ld. SR-DR we have ca .....

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ife and no contribution. Though the account shows several deposits yet, the same money had been repeatedly deposited and withdrawn by the assessee in order to display and increase his creditworthiness in front of those who were dealing with him. It was therefore only a means of enhancing his image as being financially strong and healthy. Therefore, only the peak of the daily balances which should have been adopted by the AO as the assessee s income and brought to tax. After considering the afore .....

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