Cash savings explanation accepted where earlier returns were undisputed, so addition as undisclosed income was deleted.

Consistent disclosure of cash savings in earlier assessment years, accepted by the Department, supported the assessee's explanation for the balance cash. Where the Department had not questioned the accumulated savings in those years and had no convincing basis to reject the explanation, the addition as income from undisclosed sources was unwarranted. The addition was deleted.

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Issues: Whether the addition of Rs. 10,000 as income from undisclosed sources was sustainable.

Analysis: The assessee had consistently declared cash savings in earlier assessment years, and those returns had been accepted by the Department. The appellate authority noted that if the Department had any doubt about the accumulated savings, enquiries ought to have been made in those years. In the absence of a convincing basis to disbelieve the assessee's explanation for the balance amount, the addition was held to be unwarranted.

Conclusion: The addition of Rs. 10,000 was deleted.

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