Entire Cash Deposits Cannot Be Taxed U/s. 69A; Peak Credit Theory to Apply: ITAT Chennai

Advertisement Ponnusamy Periasamy Vs ITO (ITAT Chennai) Chennai ITAT Applies Peak Credit Theory, Deletes Addition of Entire Cash Deposits U/s 69A The Chennai ITAT partly allowed the assessee’s appeal for AY 2011-12, directing that the addition under Section 69A of the Income-tax Act be restricted by applying the peak credit theory instead of taxing the entire cash deposits. The Assessing Officer had reopened the assessment under Section 148 and, after an ex parte best judgment assessment, treated cash deposits of ₹10,10,100 in the assessee’s bank account as unexplained money under Sec...