Section 68 addition on cash deposits in a credit card account deleted after business reimbursement was corroborated.

Cash deposits in an assessee's credit card account were held to be sufficiently explained where confirmations showed that the amounts were made by concerned entities towards business expenditure and reimbursement of expenses incurred for business purposes. On examination of the material on record, the source of the deposits stood corroborated, so the addition under section 68 was not warranted and was directed to be deleted.

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Issues: Whether the addition made under section 68 of the Income-tax Act, 1961, in respect of cash deposits in the assessee's credit card account was sustainable.

Analysis: The assessee produced confirmations from the concerned entities showing that the cash deposits in the credit card account were made by them towards business expenditure and reimbursement of expenses incurred by the assessee for business purposes. On examination of the material on record, the source of the deposits stood sufficiently corroborated.

Conclusion: The addition under section 68 was not warranted and was directed to be deleted.

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