Unexplained cash deposits and savings bank interest taxed as income from other sources; additions sustained for lack of proof.

Cash deposits in bank accounts were sustained as unexplained money under section 69A because the documentary record did not support the asserted agricultural sale source, the stated sale consideration was much lower than the claimed source of deposits, and the assessee failed to substantiate the explanation with material evidence. Savings bank interest was also upheld as taxable under the head income from other sources under section 56, with no basis shown for exclusion. The assessment additions were therefore left undisturbed and the assessee obtained no relief.

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Issues: (i) Whether cash deposits in the assessee's bank accounts were rightly treated as unexplained money under section 69A of the Income-tax Act, 1961. (ii) Whether savings bank interest was rightly assessed as income from other sources under section 56 of the Income-tax Act, 1961.

Issue (i): Whether cash deposits in the assessee's bank accounts were rightly treated as unexplained money under section 69A of the Income-tax Act, 1961.

Analysis: The cash deposits were made partly before the date of the agricultural land sale and the sale deed itself disclosed a much lower consideration than the amount claimed to be the source of the deposits. The assessee did not effectively participate before the first appellate authority or place material to substantiate the explanation for the deposits. The record therefore did not displace the finding that the deposits remained unexplained.

Conclusion: The addition under section 69A was sustained and the issue was decided against the assessee.

Issue (ii): Whether savings bank interest was rightly assessed as income from other sources under section 56 of the Income-tax Act, 1961.

Analysis: The interest credited in the savings bank account was of a character taxable under the head income from other sources, and no basis was shown to exclude it from taxation.

Conclusion: The addition of savings bank interest was upheld and the issue was decided against the assessee.

Final Conclusion: The assessment additions were left undisturbed and the assessee obtained no relief in appeal.

Ratio Decidendi: When the documentary record does not support the asserted source of cash deposits and the assessee fails to substantiate the explanation, the deposits may be treated as unexplained money; interest on a savings bank account is taxable as income from other sources.

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