Cash credit — Benefit of peak credit cannot be given to the assessee in the absence of any cash withdrawals and redeposit of the same

Neither the deposits are proved by the assessee nor the claim of peak is established by him. In fact assessee has also failed to show real destination of the money through bank draft so purchased by him out of the cash deposited in the bank account thereby suppressing material facts in understanding the nature of cash inflow and its destination. Entire transaction of deposits in the bank account remained under crowd of secrecy and, therefore, the explanation furnished by the assessee remained unsatisfactory. Even the benefit of withdrawal through ATM mentioned as above cannot be given importance because they are apparently for household purposes and cannot be said to be available for redeposit in absence of any other evidence of meeting out household expenditure by the assessee. We apparently uphold the contentions of Revenue that entire sum of Rs.17,48,500/- deserves to be confirmed. As a result, we uphold the order of AO setting aside the order of ld. CIT(A). Appeal filed by the Revenue is allowed whereas the Cross Objection filed by the assessee is dismissed.

ITO Vs Murlidharan G Pillai

ITAT BENCH ‘A’, AHMEDABAD

ITA No. 2258/Ahd/2010 C O No. 258/Ahd/2010 Assessment Year: 2007- 2008

Bhavnesh Saini, JM and D C Agrawal, AM

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