assessee. The assessee has also made arguments for applying peak credit
theory in light of debits and credits contained in very same seized documents ... upon, then only peak credit
recorded in the document should be considered as undisclosed income of the
assessee.
The peak credit theory
assessee made an
argument for adopting 'peak credit theory' to determine undisclosed income
for the relevant assessment year on the ground that ... benefit of 'peak' will not be available.
Therefore, in order to give the benefit of 'peak credit theory
Shri Manoj Madanlal Chhajed,, Pune vs Assistant Commissioner Of Income-Tax, ... on 28 June, 2023
also submitted
that the ld.CIT(A) has rightly considered the theory of peak investment and, thereafter,
granting adjustment of capital already available with ... submitted that the ld.CIT(A) has
applied the theory of peak investment and has upheld the total addition
assessee has maintained separate accounts. The ld.AO further held
that peak credit theory is applied when transactions are between two
persons or transaction without ... these three
separate accounts.
AO also rejected the peak working stating that peak credit theory is applied
when transactions are between two persons or transactions
assessment and no questions were raised about the computation of
peak. Thus, from the said papers total amount of Rs. 93,10,000/- was
surrendered ... once the income based on
the loose paper is computed on peak theory/Net worth basis it
includes the interest income which
bankers
of the assessee company. Thus estimation of income and peak
theory both amounts to double taxation, as its amounts to tax the
income ... bank
accounts of the assessee which warranted to invoke Peak Credit
Theory. It is also observed by Ld. CIT(A) that on similar search
action
this
account in the hands of assessee by considering the theory of peak
investment in the syndicates and has granted part relief to the
assessee ... undisclosed investment in any asset has
to be made on the peak investment theory only by taking into
consideration disinvestment of earlier investments. Thus
basis, only
the peak amount is liable to be assessed and the peak chart has been placed
in the Paper Book pages at pages ... 2012), where under similar facts and
7
circumstances, the peak theory has been applied to various entries of cash
withdrawn during the year under consideration
source of such
large deposits. However, the Assessing Officer applied the peak
credit theory and assumed that subsequent recurrence of deposit are
relatable to earlier ... justifications. The CIT(A) thus enhanced the
income by reversing the peak credit theory. The assessed income
was accordingly enhanced
