Unexplained cash deposits: addition under section 69A failed where remand report confirmed the transactions were booked in accounts.

Cash deposits in bank accounts could not be taxed as unexplained money under section 69A where the remand report showed that the transactions were already reflected in the assessee's books of account. The Revenue produced no material to dispute the factual finding of the first appellate authority or to show that the deposits were unaccounted. On that record, the deletion of the addition was supported, and the addition was not sustainable.

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Issues: Whether the addition made under section 69A of the Income-tax Act, 1961 in respect of cash deposits in bank accounts was sustainable when the remand report ed that the transactions were accounted for in the assessee's books of account.

Analysis: The remand report obtained by the first appellate authority stated that the cash deposits in the relevant bank accounts were reflected in the books of account and had been accounted for. The Revenue did not produce any material to rebut the remand report or to show that the factual finding recorded by the first appellate authority was incorrect. In these circumstances, the deletion of the addition was supported by the record.

Conclusion: The addition could not be sustained and the order deleting it was upheld.

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