ITO, New Delhi V. Param Jit Singh, New Delhi

ITA 2809/DEL/2011

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0033 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 11 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 07-04-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 31-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: VIKRAM SAHAY
• Keywords: Peak credit

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : F NEW DELHI BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI I.R. RAO, ACCOUNTANT MEMBER ITA NO: 2809/DEL/2011 ASSTT. YEAR : - 2008-09 ITO VS. SHRI PARAM JIT SINGH WARD 26(2), ROOM NO. 304-C A-4/181, SECTOR,17 3 RD FLOOR, VIKAS BHAWAN, ROHINI, NEW DELHI. NEW DELHI. (PAN BJYPS8028L) (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY :SHRI VIKRAM SAHAY, SR. DR DATE OF HEARING : 7.4.2015 DATE OF PRONOUNCEMENT : 6. 5.2015 O R D E R PER G.C. GUPTA, VICE PRESIDENT THIS APPEAL BY THE REVENUE FOR THE ASSE SSMENT YEAR 2008-09 IS DIRECTED AGAINST THE ORDER OF CIT(A). AT THE TIME OF HEARING NONE APPEARED ON BEHALF OF THE ASSESSEE AND THEREFORE THE APPEAL OF THE REVENUE IS DECIDED ON MERIT EX PARTE QUA THE ASSESSEE RESPONDENT AFTER HEARING THE LD. DR. T HE ONLY GROUND OF THE REVENUE IS AS UNDER :- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD . CIT(A) ERRED IN DELETING THE ADDITION OF RS. 1,26,35,000/- MADE ON ACCOUNT O F UNEXPLAINED CASH DEPOSIT AS THE ASSESSEE HAS NOT FILED ANY EVIDENCE ON FILE TO PROVE THAT THE CASH DEPOSIT WAS OUT OF SALE PROCEEDS WHICH HAD NOT BEEN DISCLOSED. 2. LD. DR HAS REFERRED TO PARA 4.2 OF THE CI T(A)S APPEAL ORDER AND SUBMITTED THAT THE CIT(A) WRONGLY DELETED THE ADDITION MADE B Y AO ON ACCOUNT OF UNEXPLAINED CASH DEPOSITS IN THE BANK ACCOUNT OF THE ASSESSEE. HE SUBMITTED THAT THE ASSESSEE ITA NO. 2809/DEL/2011 ITO VS. PARAM JIT SINGH 2 COULD NOT EXPLAIN THE CASH DEPOSITED IN THE BANK AC COUNT WITH M/S. KOTAK MAHINDRA BANK ON VARIOUS DATES AND THEREFORE THE ADDITION WA S RIGHTLY MADE BY THE AO. HE RELIED ON THE ORDER OF THE AO. 3. WE HAVE CONSIDERED THE SUBMISSIONS OF THE L D. DR AND HAVE PERUSED THE ORDER OF THE AO AND CIT(A). WE FIND THAT THE CIT(A) HAS RECORDED THAT APART FROM CREDITS IN THE BANK ACCOUNT OF THE ASSESSEE, THE AS SESEE HAS ALSO WITHDRAWN CERTAIN AMOUNTS IN CASH FROM HIS BANK ACCOUNT. THE CIT(A) H AS ACCEPTED THE PRINCIPLE OF PEAK CREDIT AND HAS DIRECTED THAT ONLY THE HIGHES T CREDIT AMOUNT ON ANY DATE COULD BE ADDED AS INCOME IN THE HANDS OF THE ASSESEE AND NOT THE ENTIRE AGGREGATE OF THE CREDIT ENTRIES IN THE BANK ACCOUNT OF THE ASSESSEE. HE HAS DIRECTED TO ADD RS. 20 LACS ON THIS ACCOUNT AND HAS DELETED THE BALANCE ADDITIO N OF RS. 10635000/-. THERE BEING NO MISTAKE IN THE ORDER OF THE CIT(A) IN ACCE PTING THE PRINCIPLE OF PEAK THEORY AND ACCORDINGLY RESTRICTING THE ADDITION TO THE HIG HEST CREDIT AMOUNT OF A PARTICULAR DATE DURING ENTIRE YEAR AND DIRECTING THE DELETION OF THE BALANCE OF THE ADDITION, WE CONFIRM THE ORDER OF THE CIT(A) ON THE ISSUE AND TH E GROUND OF THE APPEAL OF THE REVENUE BEING WITHOUT ANY MERIT IS DISMISSED. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 6 TH MAY, 2015. SD/- SD/- (I.R. RAO) (G.C. GUPTA) ACCOUNTANT MEMBER VICE PRESIDE NT DATED: THE 6 TH MAY, 2015 VEENA ITA NO. 2809/DEL/2011 ITO VS. PARAM JIT SINGH 3 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GUARD FILE BY ORDER DY. REGISTRAR SL. NO. DESCRIPTION DATE 1. DATE OF DICTATION BY THE AUTHOR 7.4.2015 2. DRAFT PLACED BEFORE THE DICTATING MEMBER 9. 4.2015 3. DRAFT PLACED BEFORE THE SECOND MEMBER 4. DRAFT APPROVED BY THE SECOND MEMBER 5. DATE OF APPROVED ORDER COMES TO THE SR. PS 6. DATE OF PRONOUNCEMENT OF ORDER 7. DATE OF FILE SENT TO THE BENCH CLERK 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER