Explained cash-in-hand defeated unexplained money addition under section 69A when books supported the business explanation.

Cash found during search was not assessable as unexplained money under section 69A read with section 115BBE where it was shown as cash-in-hand in the books of the assessee's proprietary concern. The record reflected the cash in the concern's accounts on the search date, the assessee was its proprietor, and the explanation that part of the cash found at residence belonged to the business was supported by the books. As the Revenue produced no material to disprove that explanation or show the amount was unavailable as business cash-in-hand, the addition was deleted.

---

---

Issues: Whether the cash of Rs. 19,00,000 found during search could be treated as unexplained money and taxed under section 69A read with section 115BBE of the Income-tax Act, 1961, or whether it stood explained as part of the cash-in-hand of the assessee's proprietary concern.

Analysis: The cash was reflected in the books of account of Arnav Trading as on the date of search, and the assessee was its proprietor. The explanation that the cash found at the residence partly belonged to the business concern was supported by the record. The Revenue did not bring any material to disprove the explanation or to show that the amount was not available as cash-in-hand of the concern.

Conclusion: The addition of Rs. 19,00,000 as unexplained cash was not sustainable and was deleted in favour of the assessee.

---