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CIT v. JRD Stock Brokers Pvt. Ltd( 2019) 409 ITR 436 / 173 DTR 118./ 307 CTR 292( Delhi)(HC),www,itatonline.org

S. 68: Cash credits- Accommodation entries- Peak credit-In order to avail of the theory of “peak credit”, the assessee has to make a clean breast of all facts. He has to explain each of the sources of the deposits and the corresponding destination of the payment without squaring them off. The ITAT cannot proceed merely on the basis of accountancy and overlook the settled legal position-Addition of peak credit under S.68 is held to be justified. .[ S.145 ]

Allowing the appeal of the revenue the Court held that ; in order to avail of the theory of “peak credit”, the assessee has to make a clean breast of all facts. He has to explain each of the sources of the deposits and the corresponding destination of the payment without squaring them off. The ITAT cannot proceed merely on the basis of accountancy and overlook the settled legal position. Accordingly the addition of Peak credit under S.68 is held to be justified . Appeal of revenue is allowed partly  .( ITA 544/2005, dt. 12.09.2018)

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