TMI Blog2018 (5) TMI 1595X X X X Extracts X X X X X X X X Extracts X X X X ..... an to Sundaram finance Ltd were made only in respect of trucks used in the transport business which were purchased out of loan from the said company. The cash withdrawals made from the bank accounts and the cash sales of the assessee from transport business duly explain the source for making repayments to Sundaram finance ltd. Hence there is no need to make any separate addition - Decided in favour of assessee. - I.T.A No. 605/Kol/2013 - - - Dated:- 23-5-2018 - Hon ble Shri A. T. Varkey, JM And Shri M.Balaganesh, AM For the Appellant : Shri Arvind Agarwal, Advocate For the Respondent : Shri Saurabh Kumar, Addl. CIT, Sr.DR ORDER Per M.Balaganesh, AM 1. This appeal by the assessee arises out of the order of the Learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l the seven bank accounts of the assessee for determining the income of the assessee in the facts and circumstances of the case. 5. The brief facts of this case are that the assessee is an individual and proprietor of Isha Enterprises. The assessee is a transport operator. The return of income for the Asst Year 2009-10 was filed by the assessee on 22.9.2009 declaring total income of ₹ 4,05,350/-. The assessee did not maintain books of accounts of his business activities. The assessee owned 4 trucks in the year under appeal. The income from transport business was offered to tax by the assessee under presumptive tax method prescribed u/s 44AE of the Act. During the course of assessment proceedings, the assessee produced bank statemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee after giving credit to the amount returned by the assessee, depreciation, loan receipt and gift receipts of the assessee apart from separately adding the repayment of loan to sundaram finance ltd made by the assessee in cash out of withdrawals from the said bank accounts. The total addition made on this account was ₹ 24,30,074/-. Hence the assessment was completed by the ld AO by making total addition of ₹ 40,33,544/- ( 16,03,470 + 24,30,074). 6. The assessee explained that in respect of the aforesaid bank account, there was an opening balance of ₹ 7,60,607/-, total deposits were to the tune of ₹ 13,02,000/- and total withdrawals were to the tune of ₹ 8,04,000/- during the year. Out of the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee was accepted by the ld AO. 6.1. The assessee prepared a chart showing cash deposits in 6 bank accounts and withdrawals from them. Total deposits in those 6 bank accounts were arrived at ₹ 39,74,999/-. There were withdrawals totaling to ₹ 15,90,280/- and one such withdrawal for a sum of ₹ 5,00,000/- was made by way of transfer from one bank to another bank. This fact was also observed by the ld AO in his order. Having observed so, the ld AO ought not to have considered the total deposits in the 6 bank accounts at ₹ 34,74,999/-. 7. The ld CITA observed that the peak credit balance of all the 7 bank accounts should be worked out and the same be treated as income of the assessee and from the same, the amount hel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s well as in facts in holding against the appellant that the peak credit balance of undisclosed bank account of ₹ 16,03,470/- was income under the head other source. 6. The appellant craves leave to add further grounds of appeal or alter the grounds at the time of hearing. 8. We have heard the rival submissions. It is not in dispute that the assessee had not maintained books of accounts for his transport business. It is not in dispute that the assessee owns less than 10 vehicles and is accordingly entitled to offer income u/s 44AE of the Act. It is not the case of the revenue that the assessee s disclosed income is not sufficient to meet the outgoings and investments made by the assessee. We find that no addition has been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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