ITAT Indore Accepts Peak Credit Theory; Past savings can explain cash deposits

Kamal Chand Sisodiya Vs ITO (ITAT Indore)

In a recent ruling, the Income Tax Appellate Tribunal (ITAT) Indore addressed the appeal of Kamal Chand Sisodiya against the Income Tax Officer (ITO) regarding the assessment year 2011-12. The Tribunal accepted the peak credit theory, confirming that past savings of a government employee should not be disbelieved and could serve as a valid source for subsequent bank deposits.

Background of the Case

The dispute arose from an assessment order dated December 13, 2018, issued under sections 144 and 147 of the Income Tax Act, 196

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