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Income Tax Appellate Tribunal, KOLKATA ‘C’ BENCH, KOLKATA
Before: Shri J. Sudhakar Reddy & Shri Aby. T. Varkey]
order : February 19th, 2020 ORDER Per J. Sudhakar Reddy, AM :- This is an appeal filed by the assessee directed against the order of the Commissioner of Income Tax (Appeals)-14, Kolkata [‘CIT(A)’ for short] dated 25.10.2018 u/s 250 of the Income Tax Act, 1961 (‘the Act’ for short) for AY 2010-11.
After hearing rival contentions we find, that the only issue that arises for adjudication, is the calculation of peak credit. The ld. CIT(A) has brought out the calculation as submitted by the assessee as follows: “Calculation of Peak Credit:- Peak Balance for the year - Rs. 29,84,190/- Less: Opening Balance - Rs. 7,04,083/- Peak for the year - Rs. 22,80,107/- Income disclosed in IDS - Rs. 19,91,000/- Income disclosed in ITR - Rs. 4,12,864/- Rs. 24,03,864/-”
Thereafter he arrived at a peak credit, without giving any credit to the opening balance of ₹7,04,083/-.
The closing cash balance of the previous year is the opening balance of the current year and this has to be deducted from the calculation of peak credit for the current year. This has not been done. Hence, we hold that the amount of ₹7,04,083/-, Assessment Year: 2010-11 Dipu Chakraborty. which is the opening balance as on 01.04.2019 has to be deducted from the peak balance calculated for the year of the Axis Bank Account. The assessee submitted the following calculation of pick credit: “Calculation of Peak Credit Peak Balance for the year in the Axis Bank Account 29,84,190/- Less: Opening Balance as at 01.04.2009 7,04,083/- Peak for the year of the Axis Bank Account 22,80,107/-”
We set aside this case to the file of the AO with the direction to adopt the above ₹22,80,107/- as peak credit after verification.
In the result, the appeal of the assessee is allowed for statistical purposes. Kolkata, the 19th February, 2020.