Case Law Details
Navdeep Sood Vs ITO (ITAT Amritsar)
It is evident that the addition is sustained on adhoc basis, on the ground that the assessee failed to support his claim regarding deposits and withdrawals were repeated for the purpose of showing higher income for VISA purposes. So far the contention of the assessee that the authorities below failed to appreciate the fact that the assessee was engaged in the business of mobile recharge is concerned even before this Tribunal, no evidence has been filed. It was incumbent upon the assessee to prove with documentary evidence about his business activities. In my considered view, business activity cannot be carried out in vacuum. He is required to prove payments made to service provider. Therefore, the contention of the assessee that he was engaged in the business of mobile recharging business is devoid of merit as he failed to furnish supporting evidences. Ld. Counsel for the assessee stated that looking to the fact that in the present case, there were repeated deposits and withdrawals from the bank account. Therefore, the AO should have worked out to peak credit of such transactions. Ld. Counsel for the assessee has also placed reliance on various case laws in the written submissions. The Revenue could not controvert the fact that there has been frequent deposits and withdrawals by the assessee out of his saving bank account. No evidence is available on record suggesting that the money as withdrawn by the assessee was used for any other purpose. In the absence of such evidence prayer for adopting peak cannot be brushed aside. In the light of the binding precedents, I hereby direct the AO to work out peak credits and restrict the addition to the extent of peak credits and he would also allow telescoping under the facts and circumstances of the present case, as prayed by the assessee.
FULL TEXT OF THE ORDER OF ITAT AMRITSAR
This appeal filed by the assessee for the assessment year 2011-12 is directed against the order of Ld. CIT(A)- 1, Jalandhar dated 22.02.2019.
2. The assessee has raised following grounds of appeal:-
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