Peak Credit Theory must be considered while treating Cash Deposit as Unexplained Cash Credits

Prakash Babu Nakundhi Krishna Reddy Vs ACIT (ITAT Bangalore) It was pointed out by the learned counsel for the Assessee that there are withdrawals and deposits in the cash book and the source of deposits can be explained by the Assessee with supporting evidence. It was submitted that it is an accepted rule that a withdrawal from the cash book would be a source for deposit of cash in the bank account at a later date. Towards this, the Assessee has submitted the break-up of daily cash balance which takes into account the receipts and outflow of cash from all sources. Admittedly these were not av...