Amritlal Agarwal v. Dy. Commissioner of Income-tax, Central Circle-4, Hyderabad
[Citation -2016-LL-0921-13]
| Citation | 2016-LL-0921-13 |
|---|---|
| Appellant Name | Amritlal Agarwal |
| Respondent Name | Dy. Commissioner of Income-tax, Central Circle-4, Hyderabad |
| Court | ITAT-Hyderabad |
| Relevant Act | Income-tax |
| Date of Order | 21/09/2016 |
| Assessment Year | 2005-06 |
| Judgment | View Judgment |
| Keyword Tags | cash credit • peak credit • cash flow |
| Bot Summary: | In both these appeals, except for the quantum, the common ground is that the CIT has erred in not verifying the working of the peak credit as worked out by the AO. For the A.Y 2005-06, the other grounds are that the CIT has erred in not giving the credit for a sum of Rs.4.00 lakhs withdrawn from the assessee s wife s bank a/c and deposited into assessees bank a/c and also in not giving credit of a sum of Rs.50,000 withdrawn on 23.09.2003 while arriving at the peak credit and in enhancing the addition. At the time of hearing, the learned Counsel for the assessee submitted that the assessee has filed all the details before the AO and it was agreed that the assessee has made deposits into his bank a/c in cash and since the assessee could not furnish the sources of these cash deposits, the peak credit method was to be adopted to arrive at the correct undisclosed cash deposits. He submitted that for the earlier two A.Ys, the AO has accepted the peak cash credit, while for the A.Y 2005-06 and 2006-07, the AO has taken peak cash credit erroneously without considering the withdrawals made by the assessee and in fact according to him, there were peak debits in the assessee s bank a/c. In support of his contention, the assessee has filed before us the remand report of the AO and also the cash flow statement of the assessee to demonstrate that the peak cash credit taken by the AO is erroneous. Having regard to the rival contentions and the material on record, we find that the assessee s bank a/c had peak cash debits and not peak cash credits and both the AO and the CIT have not properly verified the same. In view of the same, we deem it fit and proper to set aside the orders of the authorities below and remand the issue back to the file of the AO for verification of the assessee s claim and for reworking of the peak cash credits with fair opportunity of hearing to the assessee. In the result, assessees appeals are treated as allowed for statistical purposes. |