Unexplained cash deposits under section 69 sustained where the stated source lacked a credible basis for accumulation.

Cash deposits in a bank account were examined under section 69 of the Income-tax Act, 1961, where the assessee claimed that the money came from his father. The supporting affidavit, however, showed that the father's only stated source was monthly contributions from the assessee and his brothers, and the claimed accumulation was inconsistent with the father's limited receipts and household expenses. On those facts, the explanation for the deposits was found unsatisfactory and the immediate source was not established. The addition of cash deposits as unexplained money was therefore sustained against the assessee.

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Issues: Whether the addition of cash deposits in the bank account as unexplained money under section 69 of the Income-tax Act, 1961 was sustainable.

Analysis: The cash deposits were claimed to have been received from the assessee's father, but the supporting affidavit showed that the father's only stated source was monthly contributions from the assessee and his brothers. The claimed accumulation of cash was found inconsistent with the father's limited receipts and day-to-day household expenses. On these facts, the explanation for the cash deposits was held to be unsatisfactory and the immediate source of the deposits was not established.

Conclusion: The addition of INR 2,43,330/- as unexplained cash deposits was upheld and the issue was decided against the assessee.

Ratio Decidendi: Where the assessee fails to satisfactorily explain the source of cash deposits and the stated source itself lacks a credible means of accumulation, the addition may be sustained as unexplained money under section 69.

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