Unexplained cash for property advance was partly accepted where business savings were credible but family-source claims lacked evidence.

Addition for unexplained cash used as an advance to purchase immovable property was examined against the assessee's claimed sources. Accumulated savings from a long-running coconut trading business were partly accepted. However, alleged receipts from the wife and parents lacked supporting evidence, and the absence of income-tax returns prevented acceptance of the full explanation. The addition was therefore restricted, with relief granted for the balance amount.

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Issues: Whether the addition for unexplained cash utilised towards advance for purchase of immovable property was justified.

Analysis: The explanation of accumulated business savings was partly accepted because the assessee had carried on the coconut trading business over a substantial period. However, the claimed amounts received from the wife and parents were unsupported by evidence and could not be accepted. Given the assessee's non-filing of returns, the entire explanation for the cash source was not accepted.

Conclusion: The addition was restricted to Rs. 4,50,000; the assessee obtained relief in respect of the balance addition.

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