Inter-account transfer from a joint bank account cannot be treated as unexplained money when source balance is established.

A deposit credited in the assessee's bank account was held to be explained because it represented an inter-account transfer from another joint account that had sufficient opening balance. On those facts, the credited sum could not be treated as unexplained money under section 69A of the Income-tax Act, 1961, and the consequential application of section 115BBE also failed. The addition was deleted on the basis that the transfer was supported by the assessee's own bank balance.

---

---

Issues: Whether the deposit credited in the assessee's bank account could be treated as unexplained money under section 69A of the Income-tax Act, 1961 despite the assessee's claim that it represented an inter-account transfer from another joint account having sufficient opening balance.

Analysis: The assessee produced the account statement of the source account showing an opening balance of US $ 9,255.96 and a transfer of US $ 2,700 to the credited account. Both accounts were joint accounts held with the assessee's wife. On these facts, the transfer was supported by the assessee's own bank balance, and the amount could not be regarded as unexplained money. Once the addition under section 69A did not survive, the consequential invocation of section 115BBE also could not stand.

Conclusion: The addition under section 69A was deleted and the issue was decided in favour of the assessee.

---