ITAT allows addition for cash deposit in bank on Peak Credit Basis

Vakeel Ahmad Vs ITO (ITAT Lucknow) Introduction: This article delves into the case of Vakeel Ahmad versus ITO, as adjudicated by ITAT Lucknow for Assessment Year 2010-11. The core issue revolves around the taxation of bank deposits, withdrawals, and the computation of peak credit. The assessee, engaged in the business of selling cloth as a local hawker, faces scrutiny regarding the source of funds in his bank account. Detailed Analysis: The assessee presented a copy of the bank account with Punjab National Bank, revealing an opening balance of Rs.5,737/- on 02.4.2009. Subsequently, deposits an...