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| The Tax Publishers2020 TaxPub(DT) 2275 (Ahd-Trib) INCOME TAX ACT, 1961
Section 69
Where there were certain ambiguities in details filed by the assessee vis-Ã -vis considered by AO in relation to trading in commodity market, as amounts were used for the purpose of commodity trading, and amounts were withdrawn periodically considering that amounts must be used by assessee for trading activities, therefore, only peak positive or negative balance occurred in these accounts deserved to be considered as unexplained income of assessee.
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Income from undisclosed sources - Addition under section 69 - Benefit of peak credit -
Assessee was an individual doing trading in commodity market at relevant time. AO made addition under section 69. Held: There were certain ambiguities in details filed by the assessee vis-a-vis considered by the AO. Amounts were used for the purpose of commodity trading, and the amounts were withdrawn periodically. It appeared that these amounts must be used by assessee for trading activities, and therefore, only peak positive or negative balance occurred in these accounts deserved to be considered as unexplained income of assessee. AO did not call one of persons to whom cheques were issued, and failed to inquire who collected cash from bank. Therefore, alternative submission of assessee was accepted for assessing his income at peak of credit/negative balance in bank account. Addition which was a negative balance, was confirmed and rest of addition was deleted.
REFERRED :
FAVOUR : Partly in assessee's favour
A.Y. : 2010-11
IN THE ITAT, AHMEDABAD BENCH
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