already been considered in working out
peak balance, as per principle of peak theory. In this regard, I am
attaching herewith Affidavit of myself ... been considered by me for working out the peak working
as per the principle of peak theory after eliminating rotation of funds.
(v) That
which may indicate to
the contrary. The basic idea behind the peak credit theory is
to avoid double addition and to bring only the actual ... amount in the said seized documents. In respect of applicability of
peak theory, it is noted that there is nothing on record which can help
assessee
submitted that AO should have applied the peak credit theory to arrive at the
undisclosed income as there were deposit and withdrawals ... income and that the
AO ought to have applied peak credit theory in respect of the cash deposits; is
not acceptable because in the said
that deposits and withdrawals were inter-linked trading transactions
therefore the peak credit theory should be applied in the instant case.
Accordingly, the AO combined ... peak balance.
7.3 In the case of appellant as discussed above, the amount of peak is
higher than the commission income and, therefore, peak balance
could be made towards unexplained cash credit
by adopting peak credit theory in the facts and circumstances of the case.
3. At the outset ... that the Ld. AO took 'peak deposit' in the bank account acceptable under
peak credit theory which, in our opinion, is against
erred in not giving the alternate relief of
peak theory fully applicable to appellants facts as highlighted
in para 3 of our submission addressed ... peak credit.
In our view, the Ld. Commissioner of Income-tax (Appeals) has rightly
rejected the claim of the assessee of adopting peak theory
account of alleged unexplained investment on the basis of so-
called peak theory basis without any basis and also without appreciating
the facts ... made by the ld. AO on peak theory basis to Rs. 29,88,000/- denying the
alleged benefit of the peak theory without any basis
disregarded the plea of the assessee and adopted the peak credit
theory for taxing the cash deposited in the bank accounts by observing as
under ... return as undisclosed
income. However the learned CIT(A) applied the peak credit theory and
brought the amount of bank balance to income tax which
sales worked out by the assessee, on the basis of peak theory
has been accepted. The levy of excise has been determined on this sale ... basin There ore, on the basis of these
figures the peak theory applied by the appellant cannot be accepted as
it considers those expenses which
Assessing Officer can
assess the correct income on the basis of peak theory of the bank
account as discussed above. Accordingly, the revenue
