Circular Transactions proven by Father’s Bank Statement: ITAT upholds Peak Credit Assessment by CIT(A)

The ITAT upheld the CIT(A) decision regarding peak credit assessments, confirming that transactions involving the assessee’s father’s bank statement were valid for peak credit determination. The Revenue argued that the peak credit method was inappropriately applied. However, the ITAT emphasized that when a taxpayer’s transactions are supported by documentation, even if they are circular in nature, they can be considered for assessment. The Tribunal’s ruling reinforced that the concept of peak credit is applicable in cases where there is ambiguity in the taxpayer’s income and expenditure, but necessary proof must be provided to validate such claims. The Tribunal’s order highlights the importance of maintaining a proper record and documentation for transactions.