TMI Blog2022 (9) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... and neither it is a case of cash deposits and cash withdrawals for which peak credits theory is perfectly applicable. But keeping in view that the alleged credits in the bank account in the form of cash and cheque have only been utilized for making payment to Techno Shares Stocks Pvt. Ltd. and the assessee having incurred loss on such trading of shares is evidenced by the financial ledger appearing under the PAN number of the assessee on Form No. 10BB and also accepting the fact that the said cash deposit possibly contains the element of short term loans taken from friends and relatives, past savings, sale proceeds of the trading business and also looking to the fact that the peak credit in the bank account - Appeal filed by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this bank account was obtained. Ld. AO noticed that in the said bank account there were total credits amounting to Rs. 22,61,494/- and the debits were mainly payment to a share broker namely Techno Shares Stocks Pvt. Ltd. The assessee was asked to explain and it was stated that the alleged deposits were made out of the sale proceeds of rice and paddy and also loans from friends and relatives received from time to time but could not produce any evidence or proof in support of this claim. Ld. AO, thus, came to a conclusion that the said credits are undisclosed income of the assessee liable to be added u/s 69A of the Act. Addition for bank interest of Rs. 1,044/- on the said undisclosed bank account was also made and income assessed at Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidering the totality of facts it becomes clear that the Appellant is unable to explain the source of cash deposit in the impugned bank account. Consequently the addition of Rs. 22,61,494 made by the AO under section 69A of the Income tax Act 1961 is sustained. The addition of Rs. 1,044 representing interest earned on the deposits in the said account is also sustained as this income has not been disclosed by the Appellant in his return of income. The grounds of appeal numbers 1, 2 and 3 are dismissed. 4. Aggrieved, the assessee is now in appeal before this Tribunal raising the following grounds including additional ground: 1. For that impugned confirmation of entire assessment addition by the appellate authority is unjust and bad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. D/R vehemently argued supporting the orders of both the lower parties. 7. We have heard rival contentions and perused the records placed before us. The assessee has raised four grounds of appeal and one additional ground of which ground nos. 1 4 are general in nature which need no adjudication and through the remaining grounds, the assessee s contention is that only the peak credit balance of the undisclosed bank account should have been added by ld. AO and not the entire amount credited during the year in the undisclosed bank account held in IDBI Bank. 8. We notice that the assessee is primarily engaged in trading of rice and paddy and has offered the income on presumptive basis u/s 44AD of the Act. It is not in dispute that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... detail of the calculation of peak credit from either of the sides and neither it is a case of cash deposits and cash withdrawals for which peak credits theory is perfectly applicable. But keeping in view that the alleged credits in the bank account in the form of cash and cheque have only been utilized for making payment to Techno Shares Stocks Pvt. Ltd. and the assessee having incurred loss on such trading of shares is evidenced by the financial ledger appearing under the PAN number of the assessee on Form No. 10BB and also accepting the fact that the said cash deposit possibly contains the element of short term loans taken from friends and relatives, past savings, sale proceeds of the trading business and also looking to the fact that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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