TMI Blog2017 (3) TMI 431X X X X Extracts X X X X X X X X Extracts X X X X ..... ICIAL MEMBER And SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER For The Appellant : None For The Respondent : Shri Dinesh Singh, Sr.DR ORDER PER PRADIP KUMAR KEDIA, AM: The captioned appeal by the Assessee is directed against the order of the Commissioner of Income Tax(Appeals)-IV, Surat [CIT(A) in short] dated 28/02/2013 for the Assessment Year (AY) 2008-09 . 2. The ground of appeal raised by the Assessee reads as under:- On the facts and circumstances of the case, the Learned Commissioner of Income Tax Appeal was not justified in confirming the addition of ₹ 22,51,148/- being unexplained credit in bank deposit. 3. When the matter was called for hearing, none appeared for the assessee. It is seen f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the various companies on behalf of the said party. The appellant further submitted that from the bank statement, it was evident that two or three days after cash was deposited in the account, cheques were issued for investment in the name of the actual investor. The appellant stated that he was getting commission @1 to 2% which he had offered for taxation in his return of income. 3. The AO did not accept this contention of the appellant on the grounds that the appellant has not given the name and address of the so called investors or any other documentary evidence in support of his claim that the cash received from the investors was deposited in his bank account. The AO further found that the appellant could not furnish the detail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e various investors the AO had rightly rejected his plea that his commission income be estimated at 1.5% of the total amount deposited /credited in the said bank account. The appellant had also failed to submit any TDS certificate from insurance/mutual fund/ bond companies on the commission, if any, paid to the appellant. In appeal, the AR of the appellant accepted that he did not have any documentary evidence in respect of the bank transactions. 5.2 From the bank statement of the appellant it is seen that during the year the total cash deposit is ₹ 24,93,500/- and total cheque deposit is ₹ 2,09,677/- Against these deposits the appellant has issued cheques of ₹ 5,62,229/- which has been cleared by clearing and has al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... What the appellant is offering for taxation is the maximum amount outstanding in the bank and not the peak credit balance. The latter can be calculated only if the appellant provides complete details of all debit and credit transactions and establishes that the amount withdrawn by cheque/cash was available for rotation or recycling. Under these circumstances, the benefit of rotation of amount withdrawn by cheque for re-deposit by cheque/cash cannot be allowed to the appellant. At most, the appellant can only be allowed the benefit of rotation of cash, that is, the cash withdrawals might be available for re-depositing in cash. Considering the complete facts of the appellant s case, peak is admissible only to the extent of cash deposit and ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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