RAMESH RANJAN,FARIDABAD vs. ITO, WARD-2(2), FARIDABAD

The present appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals)/ National Faceless Appeal Centre, (‘Ld. CIT(A)’ for short), dated 01/04/2025 for the Assessment Year 2012-13.

Brief facts of the case are that, an assessment order came to be passed on 23/10/2019 bytreating the entire cash deposits as at Rs.

The Ld. Counsel for the Assessee submitted that both the Ld. CIT(A) as well as the A.O. has not considered the peak credit for the year under consideration, however, for Assessment Year 2011-12, Ld. CIT(A) directed the A.O. to estimate the income of the Assessee on the basis of peak credit as appearing the bank account of the Assessee and restricted the addition. Thus, Ld. Assessee's Representative sought for direction to the A.O, to estimate the income of the Assessee on the basis of the peak credit appearing in the bank account.

Per contra, the Ld. Department's Representative relying on the Lower Authorities sought for dismissal of the Appeal.

We have heard both the parties and perused the material available on record. Assessee was a non-filer for the year under consideration and made cash deposits of Rs.39,73,517/- in his ICICI bank A/c and Rs. 21,02,100/- in PNB A/c during the FY 2011-12.

As could be seen from the order of the Ld. CIT(A) for Assessment Year 2011-12, in similar circumstances, the Ld. CIT(A) ‘found it be fair and reasonable to estimate the income of the Assessee on the basis of peak credit as appearing in the bank account of the Assessee’ and accordingly restricted the addition. Considering the above facts, since there is no change of circumstances in the year under consideration, in order to follow the principals of consistency, we direct the A.O. to estimate the income of the Assessee on the basis of peak credit appearing in the bank account of the Assessee for the year underconsideration. Accordingly, we partly allow the Grounds of Appeal of the Assessee.