ITO Vs V.G. Rajendran (ITAT Chennai)
ITAT Chennai held that only peak credit to be considered and no further addition to be made in case of circular transaction since bank account of appellant’s father duly considered for the purpose of calculating peak credit in the hands of assessee.
Facts- The only issue in this appeal of Revenue is against the order of CIT(A) deleting the addition made by AO while giving effect to the order of Tribunal u/s.143(3) r.w.s. 147 r.w.s. 254 of the Act dated 26.12.2018, wherein the income assessed u/s.143(3) r.w.s. 147 of the Act dated 02.04.2013 was adopted at Rs.26,03,26,145/-.
Conclusion- Held that based on peak credit calculated after considering the bank account of assessee’s father, the peak credit is at Rs. 2.99 crores. The lower authorities have given a concurrent finding that the bank account has been duly considered for the purpose of computing peak credit which has been assessed in the hands of the assessee. We noted from the facts of this case and paper-book filed before us that all the bank statements that has been used to make the circular transactions were before the AO and on that basis, peak credit has been arrived at Rs.2.99 crores. We noted that the CIT(A) has considered and duly ascertained the peak credit of bank account of the assessee’s father Shri V. Gurunathan, which is duly considered for the purpose of computing peak credit in the hands of the assessee. We noted that the AO has verified this fact and CIT(A) while giving finding has considered the assessee’s father’s bank account and circular transactions entered into the assessee’s bank accounts, which are part of assessee’s paper-book, we find no infirmity in the order of CIT(A) directing the AO to assess only the peak credit at Rs.2.99 crores and no further addition is to be made. Hence, the ground raised by Revenue is accordingly dismissed.
