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Facts
The assessee's appeal for AY 2011-12 arose against the CIT(A)'s order, which upheld proceedings under section 147 r.w.s. 144 of the Income-tax Act, 1961. The lower authorities treated the assessee's cash deposits of Rs. 37,71,700/- as unexplained cash credits under section 68.
Held
The Tribunal noted that the assessee's bank statement showed a peak balance of Rs. 1,27,800/- as of 10.09.2010, which was not rebutted by the Revenue. Therefore, the addition was restricted to this peak balance amount.
Key Issues
Whether the entire cash deposits can be treated as unexplained cash credits or if the peak balance should be considered.
Sections Cited
147, 144, 68
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Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI SATBEER SINGH GODARA & SHRI MANOJ KUMAR AGGARWAL
ORDER
Per Satbeer Singh Godara, Judicial Member:
This assessee’s appeal for assessment year 2011-12, arises against the Commissioner of Income Tax (Appeals)-1 [in short the “CIT(A)”], Agra’s order in Appeal No. 210/CIT-(A)-I/Agra/ITO-1(2)(2)/Agra/2016-17 dated 22.10.2018, involving proceedings under section 147 r.w.s. 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties at length. Case file perused.
It emerges during the course of hearing with the able assistance coming from both the parties that the learned lower authorities have treated the assessee’s cash deposits of Rs. 37,71,700/- as unexplained cash credits u/s. 68 of the Act, in the course of assessment framed on 07.12.2017 as upheld in the lower appellate discussion.
Faced with this situation, our attention was invited to the assessee’s bank statement wherein there are total 519 transactions indicating peak balance as on 10.09.2010 to the tune of Rs.1,27,800/- only. This clinching figure has gone un-rebutted from the Revenue side. We, therefore, uphold the impugned addition only to the tune of peak balance amount of Rs.1,27,800/- only and direct the learned Assessing Officer to frame his consequential computation in very terms.
This assessee’s appeal is partly allowed.
Order pronounced in the open court on 17.02.2025.