ITAT Delhi Directs AO to Apply Peak Credit Theory for Cash Deposits

Shakti Singh Vs NFAC (ITAT Delhi) Income Tax Appellate Tribunal (ITAT) Delhi bench has remitted the case of Shakti Singh back to the National Faceless Appeal Centre (NFAC) for a fresh assessment of unexplained cash deposits. The core issue revolves around the addition of Rs. 1,13,31,950 made by the Assessing Officer (AO) on account of cash deposited in the assessee’s bank account during the demonetization period in Assessment Year (AY) 2016-17. The ITAT has directed the AO to apply the peak credit theory and allow for a set-off against the assessee’s agricultural income. The case o...