peak balance. After rejecting the working of
the peak credit furnished by the appellant, the AO himself worked out the combined peak
taking into account ... circumstances, the peak of that money which was
deposited by the appellant on his own account could be assessed under peak credit theory
because entire
Settlement Commission directed the Revenue to check the
calculation on "peak credit theory" but without receiving
comment, the decoding was made by treating ... Rule 9 Report thus "peak
credit theory" should have been applied. The "theory of peak
credit" has not been applied
peak credit individually of each party rather
peak credit should have been worked out for all the five parties
cumulatively. Details of these peak credits ... 2000 in respect of his contention of applying
cumulative peak theory.
10. On the other hand Learned Departmental Representative
vehemently argued supporting the order
reducing the addition made by the Assessing Officer by applying peak
theory, he supported the order of the Assessing Officer.
7. On the contrary ... Counsel for the assessee submitted that peak theory is
rightly applied and the Ld. CIT(A) failed to give set of expenditure made
acceptable by the AO for the reasons
that gross profit and peak theory can be applied where the
assessee is able to substantiate ... earlier
years. Therefore, the AO was of the view that peak theory
applied by the assessee is not correct and the total
undisclosed income offered
circumstances, we find that various courts have held to apply the peak credit
theory to tax the income of the assessee. In this regard ... same to tax., However, he shifted his stand by accepting the peak
credit theory before the ld. CIT(A). This is evident from the fact
allowing
the appeal of the assessee either based on the peak credit theory or
based on the provisions of Section 44AF ... undisclosed amount of
Rs.11,04,790/- based on the peak credit theory or based on the
provisions of Section 44AF
support his action.
8.4 The ld. AO has erred in applying peak theory. Peak theory is relevant
when it is established that the money belongs ... theory application is unjustified and deserves to be quashed.
In view of the above, the cash deposits are fully explained. The addition of
the peak
before the CIT(A) and the Ld.CIT(A) applied
the theory of peak credit and confirmed the addition ... addition of peak credit is reasonable and accordingly allowed the partial
relief. The Ld. CIT(A) upheld peak credit theory and confirmed the addition
financial year wise etc. However, the
Ld.CIT(A) applied the peak credit theory and confirmed the addition ... source was not explained, the CIT(A) deleted the addition
applying peak credit theory which is not correct. The assessing officer has
examined the submissions
