Bank credits treated as SIM card sale proceeds; section 69A addition deleted after evidence supported business turnover.

Bank credits were treated as business turnover from SIM card sales, not unexplained money under section 69A, because the deposits matched the assessee's distributor activity, corresponding purchases, and reflected profit. The appellate finding accepted that the receipts were supported by surrounding evidence and that the amount credited in the bank account represented sale proceeds. Profit was recomputed on the verified receipts, and no factual infirmity in that appreciation of evidence was shown. The deletion of the addition was therefore upheld, and the Revenue's challenge failed.

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Issues: Whether the addition made under section 69A of the Income-tax Act, 1961 on account of bank credits was rightly deleted by treating the receipts as sale proceeds of SIM cards and by estimating profit thereon.

Analysis: The assessee's deposits were examined in light of the surrounding evidence, including the business activity as distributor of SIM cards, the corresponding purchases made against the receipts, and the profit already reflected by the assessee. The appellate finding was that the entire amount credited in the bank account represented business turnover from sale of SIM cards and not unexplained money. The profit was also recomputed on the verified receipts, and no contrary factual infirmity in that appreciation of evidence was shown.

Conclusion: The deletion of the addition was upheld and the Revenue's challenge failed.

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