TMI Blog2015 (11) TMI 1601X X X X Extracts X X X X X X X X Extracts X X X X ..... the figures worked out by the assesse and bring to tax the same. Thus we direct the AO to assess the peak credit being a sum of ₹ 1,01,40,000/- as computed by assessee on the basis of deposits made in these six bank accounts with Axis Bank Ltd. in lieu of cash deposits added by the AO at ₹ 83,48,16,130/-. Accordingly, the AO will verify the peak and will make addition of the peak amount only. Accordingly, this issue of assessee’s appeal is partly allowed for statistical purposes. - I.T.A No. 577/Kol/2013 - - - Dated:- 20-11-2015 - Shri Mahavir Singh, JM And Shri Waseem Ahmed, AM. For the Appellant: Shri Miraj D. Shah, FCA For the Respondent: Md. Ghayas Uddin, JCIT, Sr. DR ORDER Per Shri Mahavir Singh, JM: This appeal by assessee is arising out of order of CIT(A)-XIV, Kolkata in Appeal No.746/CIT(A)-XIV/Kol/11-12 dated 12.02.2013. Assessment was framed by ITO, Ward-25(2), Kolkata u/s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as the Act ) for AY 2009-10 vide its order dated 28.12.2011. 2. The only issue in this appeal of assessee is against the order of CIT(A) confirming the addition made by AO being cash deposits in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ereafter, MASPL has transferred the entire amount to six private limited companies called Gokul Distributors, Indigo Commotrade, Jupiter Tradelink, New Era Commotrade, Swift Distributors and Zenith Management all having their accounts in the same bank branch. As per the details collected from the Registrar of Companies (ROC), the assessee is the main director controlling the six Pvt. Ltd. companies. The assessee has been highly secretive in not revealing the details of the investments made by him from the said cash deposits. The money has been all along in his control right from the stage of deposits in the eleven savings bank accounts to the stage of receiving the same as a director of the six Pvt. Ltd. companies. As per the details obtained from the ROC, the said six Pvt. Ltd. companies have not disclosed their account with the Axis Bank and its utilization in their audited final accounts. 7. In view of the above discussion, it is clear that the assessee has failed to prove the sources of the cash deposits made by him and the investments generated from the same. He has also failed to make out a case for taxing him on the basis of peak cash credit. Accordingly, the assessee& ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... silent on the remaining five bank accounts. During the appellate proceedings also same submission has been made as made before the Assessing Officer. Having considered the submission of the appellant I find that the appellant has been very secretive and he has not disclosed the true and correct facts. He has not explained the source of cash deposits in the eleven bank accounts operated by him. It is seen from the assessment order that the assessee was examined U/S 131 by the Assessing Officer. However, he did not explain the source of cash deposits. Since the assessee has failed to explain the source of deposits in the bank accounts standing in his name with the Axis Bank, Sarat Bose Road Branch, I am of the considered view that the Assessing Officer was right in law and facts in making addition on account of unexplained deposits. As to the assessee's submission that only peak deposits appearing in the bank account should be added, I am of the considered view that the Assessing Officer has given cogent reasons as to why the assessee's submission is not acceptable. Finally, the CIT(A) also rejected the peak credit theory of the assessee and confirmed the addition as ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne of these six bank accounts and issued cheque of the same amount as can be seen from the extracts of bank statements of these six bank accounts filed by assessee in its paper book. On the very date of cash deposit, cheque is issued of the similar amount. This clearly reveals that the assessee is being used for providing accommodation entry only. All the deposits made in these six bank accounts have been transferred to Maple Advisory Services Pvt. Ltd. and in turn Maple Advisory Services Pvt. Ltd. has further transferred this amount to six Private Limited Companies namely, Gokul Distributors, Indigo Commotrade, Jupiter Tradelink, New Era Commotrade, Swift Distributors and Zenith Management and all these private limited companies are having their bank accounts in the same bank branch. This modus operandi clearly reveals that the assessee is merely an accommodation entry provider and nothing else. 6. In view of the above facts and circumstances, the Ld. Counsel for the assessee relied on the decision of Coordinate bench in the case of ITO vs. Shri Piyush Poddar in ITA No. 1050/Kol/2011 for AY 2006-07 dated 07.09.2015, wherein exactly on similar circumstances, the Tribunal has dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hom the accommodation entries are provided by the assessee and the names and addresses of such parties could not be provided by him for want of maintenance of books and details. This goes to prove that the genuineness of the transactions contained in the accommodation entry business as reflected in the said bank account could not be proved by the assessee. This is a distinct and crucial factor which distinguishes the decision rendered by the Hon ble Allahabad High Court in 276 ITR 38 which was heavily relied upon by the Revenue. 11. On perusal of the bank account with Central Bank of India, we are satisfied that the deposits and withdrawals are closely linked with and related to each other on day-today basis. It is also observed that the ld. AO had not brought any material or evidence on record to prove that the withdrawals made by the assessee from the said bank account having utilized for making any other investments outside the books or meant for any other purpose other than for accommodation entry business. It is pertinent to look into the decision rendered by the Kolkata Tribunal in the case of Mahesh Kumar Gupta in IT(SS)A. No.11/Kol/2014 dated 0.2.2005 wherein ITAT obs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the assessee has filed statement of peak credit i.e. deposit and withdrawals from the bank account of SBBJ wherein the peak credit as on 24.01.2007 was at ₹ 1,80,247/-. We further find that the money deposited in the bank account was withdrawn either on the same day or on subsequent dates. It is seen that the total addition of the aggregate deposits in the bank account after giving benefit of withdrawals is the peak amount and in that case peak amount is to be added. We find that the assessee has maintained a bank account which is admittedly not disclosed to the revenue and there is no doubt that the deposits in this bank account represents undisclosed income of the assessee to be assessed as undisclosed income but qua only the peak amount. The assessee has filed complete statement of peak deposit and withdrawals which is at ₹ 1,87,247/- and before CIT(A). We are of the view that the CIT(A) has rightly directed the AO to restrict the addition to the extent of peak amount and we confirm the same. This issue of revenue s appeal is dismissed. 13. However, we would like to make it clear that this direction to the ld. AO to assess the peak credit in this case s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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