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Facts
The assessee's appeal concerns an assessment order for the year 2012-13. The Assessing Officer, invoking Section 44AD of the IT Act, assessed 8% of the total credit in a bank account (Rs.1,23,82,648) as the assessee's profits. The CIT(A) held that the entire credits were liable to be treated as income.
Held
The Tribunal considered the rival submissions and perused the bank accounts, noting both debit and credit entries. It was held that the peak credit in the bank account is liable to be assessed in the hands of the assessee. The Assessing Officer was directed to add the peak credit.
Key Issues
Whether the peak credit in the bank account should be brought to tax as the assessee's income.
Sections Cited
44AD, 144, 147
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Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL,
This is an appeal fled by the assessee against the order of ld CIT(A), This is an appeal fled by the assessee against the order of ld CIT(A), This is an appeal fled by the assessee against the order of ld CIT(A), Hazaribag, Jharkhand , Jharkhand in Appeal No. 10409/HZB/2017-18 dated dated7.3.2019 for the assessment year 2012 assessment year 2012-13.
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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
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In the result, appeal of the assessee is partly allowed.
Order dictated and pronounced in the open court on 9/06/2025.
Sd/- Sd/- (RATNESH NANDAN SAHAY) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER Ranchi; Dated 09/06/2025 B.K.Parida, SPS (OS) Copy of the Order forwarded to : 1. The Appellant : Rajesh Kumar Pandey, C/O. M/s. Ramgarh Sponge Iron, Near Punjab National Bank,Main Road, Ramgarh 2. The Respondent: ITO, Ward-2(4), Ramgarh 3. The CIT(A)Hazaribag 4. Pr.CIT,Hazaribag 5. DR, ITAT, 6. Guard file. //True Copy// By order
Sr.Pvt.secretary ITAT, Ranchi
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