Case Law Details
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 and withdrawals occurred, with the peak credit reaching Rs.79,668/- by 11.09.2009. The pattern suggests that withdrawals exceeded deposits, indicating the assessee utilized the funds for various purposes.
Before the ld. CIT(A), the assessee asserted that the deposits of Rs.15,82,190/- originated from the sale proceeds of cloth, advocating computation under Section 44AF of the Act. However, the ld. CIT(A) rejected this claim due to the absence of evidence establishing the assessee as a local hawker of cloth.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
