SRI RAJESH KUMAR PANDEY,RAMGARH vs. ITO, WARD-2(4), RAMGARH

Shri Khub Chand Pandya, ls Dr DRDR appeared for the revenue and Shri Devsh Poddar,ld AR appeared for the assessee.

It was submitted by ld AR that the original assessment order came to be passed u/s.144/147 of the Act. It was the submission that a bank account maintained in the name of the assessee with ICICI Bank had been found during the relevant assessment year and the Assessing Officer had found that there was a total credit of Rs.1,23,82,648/-. The Assessing Officer had assessed 8% of the said credits as the profits of the assessee by invoking the provisions of section 44AD of the Act. It was the submission that the addition on account of salary had also been made. On appeal, ld CIT(A) had held that the entire credits are liable to be treated as income of the assessee. It was the submission that the said bank account contains cash deposits and cheque deposits and corresponding withdrawal also. It was the submission that he had no objection if the peak credit was brought to tax in the hands of the assessee.

In reply, ld Sr DR did not raise any serious objection to the peak credits being assessed in the hands of the assessee.

We have considered the rival submission. A perusal of the bank accounts shows that there are both debit and credit entry in the bank. In such circumstances, obviously, the peak credit that is liable to be assessed in the hands of the assessee. In these circumstances, the Assessing Officer is directed

In the result, appeal of the assessee is partly allowed.