ITAT partially allows appeal on unexplained cash deposits, upholds interest levy.

The ITAT partially allowed the appeal concerning the addition of unexplained cash deposits in the bank account, confirming a portion of the addition while partly accepting the appellant's explanation. It dismissed the appellant's denial of liability to pay interest under sections 234B and 234C, upholding the levy of interest as consequential.

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Issues:
1. Addition of Rs. 2,00,900 as unexplained cash deposits in bank account.
2. Denial of liability to pay interest under sections 234B and 234C of the Income-tax Act, 1961.

Issue 1: Addition of Rs. 2,00,900 as unexplained cash deposits in bank account:
The appellant contested the addition of Rs. 2,00,900 made by the Assessing Officer, claiming it to be arbitrary and based on surmises. The CIT(A) rejected the appellant's explanation that the deposits were made from withdrawals by her husband, citing lack of evidence. The appellant argued before ITAT that the cash deposits were sourced from withdrawals made by both the appellant and her husband. The ITAT analyzed the bank account statements and withdrawals made by the appellant and her husband. The ITAT accepted that Rs. 31,000 was available as cash in hand from the appellant's withdrawals but doubted the availability of the remaining amount. Regarding the husband's withdrawals, the ITAT partially accepted the appellant's claim, allowing Rs. 1 lakh as available cash from her husband's withdrawals. Ultimately, the ITAT confirmed the addition of Rs. 69,900 and partly allowed the appeal.

Issue 2: Denial of liability to pay interest under sections 234B and 234C:
The appellant denied liability to pay interest under sections 234B and 234C of the Income-tax Act, 1961. The ITAT dismissed this ground, stating that the levy of interest was consequential. Therefore, the ITAT upheld the interest charged under sections 234B and 234C. As a result, the appellant's appeal on this issue was dismissed.

In conclusion, the ITAT partially allowed the appeal regarding the addition of unexplained cash deposits in the bank account, confirming a portion of the addition while partially accepting the appellant's explanation. The ITAT dismissed the appellant's denial of liability to pay interest under sections 234B and 234C, upholding the levy of interest as consequential.

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