Explained bank deposits under section 68 can earn partial relief when supporting evidence shows sources of credit entries.

Bank deposits and credit entries were examined under section 68 on the basis of the assessee's explanations and supporting material. The sources claimed included salary savings, loan receipts, fixed deposit maturity proceeds, redeposits of earlier withdrawals, and funds received through a brother; the appellate record also noted that the assessee's wife was an earning member. The Tribunal found that the material on record justified further relief, accepted the additional explanation and evidence for part of the deposits, and held that remand to the Assessing Officer was unnecessary. The sustained addition was therefore reduced, with only a balance amount kept as unexplained.

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Issues: Whether the addition sustained under section 68 on account of bank deposits and credit entries was justified, and whether the additional evidence produced before the appellate authority could be admitted and considered for granting partial relief.

Analysis: The assessee was a salaried employee and had explained the deposits as arising from salary savings, loans, fixed deposit maturity proceeds, and redeposit of earlier withdrawals. The appellate record showed that the assessee's wife was also an earning member, but that aspect was not given due weight by the lower authorities. The Tribunal also accepted the additional explanation and supporting material regarding the deposit of Rs. 99,350/- as source-linked funds received through the assessee's brother. In the circumstances, the Tribunal held that the material on record justified further relief and that remand to the Assessing Officer was not necessary.

Conclusion: The addition sustained by the Commissioner (Appeals) was reduced to Rs. 1,00,000/-, and the assessee obtained partial relief.

Final Conclusion: The assessment was not upheld in full, and the disputed unexplained-credit addition was substantially reduced on the basis of the explanations and evidence accepted by the Tribunal.

Ratio Decidendi: Where explained sources and supporting evidence show that bank deposits and credit entries cannot be treated as wholly unexplained, the appellate authority may grant partial relief and sustain only the balance addition.

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