Cash flow statement prepared on the basis of seized material cannot be ignored

ACIT Vs. M/s. Jayesh Finance (ITAT Ahmedabad) It is an established way of computation of income where ever there is recycling of cash in a financial business to work out the peak credit. Particularly in a situation, when no regular or proper books of account are maintained by the assessee then a cash flow statement is generally prepared. The department then makes an addition on the basis of the peak credit, as appearing in the cash­flow-statement, if there is recycling of cash. That peak credit is thus treated as an unexplained income of the assessee. But that working ought not to be final....