You can use set which will get only unique characters from the input. Then iterate over them and count how many times it occurs in the input with count. If it occurs more often then the max and isalpha (not a space) then set max to the count.
text='This is a test of tons of tall tales'
un=set(text.upper())
max=0
fav=''
for u in un:
    c=text.upper().count(u)
    if c>max and u.isalpha():
        max=c
        fav=u
print(fav) # T
print(max) # 6
EDIT
To do this from your code: fix capitalization(for, if) and then find and print/return the most common letter. Also AlphaCount has an extra 0, you only need 26.
text='This is a test of tons of tall talez'
AlphaCount=[0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0]
Alpha='ABCDEFGHIJKLMNOPQRSTUVWXYZ'
for ch in text: 
    ch= ch.upper()
    index=Alpha.find(ch)
    if index >-1:
        AlphaCount[index]+=1
print(AlphaCount) # the count of characters
print(max(AlphaCount)) # max value in list
print(AlphaCount.index(max(AlphaCount))) # index of max value
print(Alpha[AlphaCount.index(max(AlphaCount))]) # letter that occurs most frequently