CHANDANA BANERJEE,KOLKATA vs. I.T.O WD - 11(1),KOL, KOLKATA

This appeal by assessee is arising out of order of CIT(A)-XII, Kolkata vide Appeal No. 190/XII/11(1)/11-12 dated 15.03.2013. Assessment was framed by ITO, Wd-11(1), Kolkata u/s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for Assessment Year 2009-10 vide his order dated 29.09.2011.

The only issue in this appeal of assessee is against the order of CIT(A) in treating the cash deposit into savings bank account with Axis Bank as suppressed income. For this assessee has raised following relevant two grounds: “2. For that in the facts and circumstances of the case, that cash deposited into Savings Bank Account with Axis Bank to the tune of Rs.30,77,000/- has been treated as suppressed income and added to total income.

For that in the facts and circumstances of the case, that these cash deposits of Rs.30,77,000/- were made out of cash withdrawn Rs.16,50,000/- on various dates from the same bank account and also out of cash withdrawn from ICICI Bank of Rs.23,50,000/- on various dates.” 3. We have heard rival submissions and gone through facts and circumstances of the case. Brief facts are that the assessee is having income from salary, business, house property and other sources. During the course of assessment proceedings, the AO noted that the assessee has deposited cash of Rs.30.77 lacs in her savings bank account maintained with Axis Bank, Rash Behari Avenue Branch but could not explain the source of deposit. Hence, the AO treated the entire cash deposit as unexplained cash credits u/s. 68 of the Act and added to the returned income of the assessee amounting to Rs.30.77 lacs. Aggrieved, assessee preferred appeal before CIT(A), who also confirmed the action of AO as the assessee could not prove that receipts from business transaction as she has failed to file any reconciliation or evidence qua that. Aggrieved, now assessee is in second appeal before Tribunal. 4. Before us, at the outset, ld. Counsel for the assessee submitted a peak statement computed by assessee and stated that assessee’s income should be estimated after verifying the peak credit and entire cash deposit should not be added. We find from the statement of Axis Bank that there are cash withdrawals as well as cash deposits. It is a fact that cash withdrawals and cash deposits should be considered and peak of the same should be assessed as income. This view of ours is taken in the case of ITO vs. Shri Piyush Poddar in for AY 2006- 07 dated 07.09.2015. In term of the above, we restore the matter back to the file of AO after setting aside the orders of the lower authorities for framing assessment on the basis of peak computation of cash credit entries in Axis Bank account. Accordingly, we remit the issue back to the file of AO for fresh adjudication in terms of above. Appeal of assessee is allowed for statistical purposes. 5. In the result, appeal of assessee is allowed for statistical purposes. Order pronounced in the open court. Sd/- Sd/- (Waseem Ahmed) (Mahavir Singh) Accountant Member Judicial Member