Principle of Peak Credit- Entire Cash Deposit cannot be Treated as Income without considering withdrawal

Sagar Navinchandra Chande Vs I.T.O (ITAT Rajkot) Admittedly, there was cash aggregating to Rs. 11,54,350/- deposited in the bank account of the assessee which was treated as income from undisclosed sources by the lower authorities. The assessee before the leaned CIT-A explained the amount of cash deposit represent amount deposited by the customer to whom vehicle parts were sold and from this activity he earned only commission income and repaid the amount to the actual supplier after retaining commission. The explanation of the assessee was rejected by the learned CIT-A on reasoning that the de...