Amritlal Agarwal, Hyd, Hyderabad V. DCIT, Central Circle 4, Hyderabad, Hyderabad

ITA 428/HYD/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 6225 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 06-09-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 28-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K J RAO
• Assessee Lawyers: KISHORE KUMAR KABRA
• Keywords: Peak credit

Judgement Text

ITA NOS 428 429 OF 2016 AMRITLAL A GARWAL HYDERABAD. PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NOS.428 & 429/HYD/2016 (ASSESSMENT YEARS: 2005-06 & 2006-07) SHRI AMRITLAL AGARWAL HYDERABAD PAN: ACAPA 0312 P VS DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-4, HYDERABAD FOR ASSESSEE: SHRI KISHORE KUMAR KABRA FOR REVENUE: SHRI K.J. RAO, DR O R D E R PER SMT. P. MADHAVI DEVI, J.M. BOTH ARE ASSESSEES APPEALS FOR THE A.YS 2005-06 AN D 2006-07 RESPECTIVELY. IN BOTH THESE APPEALS, EXCEPT FOR THE QUANTUM, THE COMMON GROUND IS THAT THE CIT (A) HAS ERRED IN NOT VERIFYING THE WORKING OF THE PEAK CREDIT AS WORKED OUT BY THE AO. FOR THE A.Y 2005-06, THE OTHER GROUNDS ARE THAT THE C IT (A) HAS ERRED IN NOT GIVING THE CREDIT FOR A SUM OF RS.4.00 LAKHS WITHDRAWN FROM THE ASSESSEES WIFES BANK A/C AND D EPOSITED INTO ASSESSEES BANK A/C AND ALSO IN NOT GIVING CREDIT O F A SUM OF RS.50,000 WITHDRAWN ON 23.09.2003 WHILE ARRIVING AT THE PEAK CREDIT AND IN ENHANCING THE ADDITION. DATE OF HEARING : 12.09.2016 DATE OF PRONOUNCEMENT : 21.09.2016 ITA NOS 428 429 OF 2016 AMRITLAL A GARWAL HYDERABAD. PAGE 2 OF 3 2. AT THE TIME OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS FILED ALL THE DETAILS BEFORE THE AO AND IT WAS AGREED THAT THE ASSESSEE H AS MADE DEPOSITS INTO HIS BANK A/C IN CASH AND SINCE THE AS SESSEE COULD NOT FURNISH THE SOURCES OF THESE CASH DEPOSITS, THE PEAK CREDIT METHOD WAS TO BE ADOPTED TO ARRIVE AT THE CORRECT U NDISCLOSED CASH DEPOSITS. HE SUBMITTED THAT FOR THE EARLIER TW O A.YS, THE AO HAS ACCEPTED THE PEAK CASH CREDIT, WHILE FOR THE A. Y 2005-06 AND 2006-07, THE AO HAS TAKEN PEAK CASH CREDIT ERRONEOU SLY WITHOUT CONSIDERING THE WITHDRAWALS MADE BY THE ASSESSEE AN D IN FACT ACCORDING TO HIM, THERE WERE PEAK DEBITS IN THE ASS ESSEES BANK A/C. HE SUBMITTED THAT THE CIT (A) HAS, ON THE OTHE R HAND, ENHANCED THE ASSESSMENT BY REWORKING THE CASH DEPOS ITS AND ACCORDING TO HIM THIS REWORKING IS ALSO ERRONEOUS. IN SUPPORT OF HIS CONTENTION, THE ASSESSEE HAS FILED BEFORE US TH E REMAND REPORT OF THE AO AND ALSO THE CASH FLOW STATEMENT OF THE A SSESSEE TO DEMONSTRATE THAT THE PEAK CASH CREDIT TAKEN BY THE AO IS ERRONEOUS. THE LEARNED DR, ON THE OTHER HAND, SUPPO RTED THE ORDERS OF THE AUTHORITIES BELOW. 3. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE MATERIAL ON RECORD, WE FIND THAT THE ASSESSEES BANK A/C HAD PEAK CASH DEBITS AND NOT PEAK CASH CREDITS AND BOTH THE AO AN D THE CIT (A) HAVE NOT PROPERLY VERIFIED THE SAME. IN VIEW OF THE SAME, WE DEEM IT FIT AND PROPER TO SET ASIDE THE ORDERS OF THE AU THORITIES BELOW AND REMAND THE ISSUE BACK TO THE FILE OF THE AO FOR VERIFICATION OF THE ASSESSEES CLAIM AND FOR REWORKING OF THE PEAK CASH CREDITS WITH FAIR OPPORTUNITY OF HEARING TO THE ASSESSEE. ITA NOS 428 429 OF 2016 AMRITLAL A GARWAL HYDERABAD. PAGE 3 OF 3 4. IN THE RESULT, ASSESSEES APPEALS ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST SEPTEMBER, 2016. SD/- SD/- (B. RAMAKOTAIAH) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 21 ST SEPTEMBER, 2016. VINODAN/SPS COPY TO: 1 M/S. R.B. KABRA & CO. CAS, 4-1-917 TILAK ROAD, HY DERABAD 500001 2 DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-4 HYDERABAD 3 CIT (A)-12 HYDERABAD 4 PR. CIT (CENTRAL) HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER