Section 68 cash deposits explained as school fees, with supporting records, leading to deletion of the addition.

Cash deposits in the assessee's bank account were explained as school fees received from students during the academic year, supported by the bank statement showing evenly spread deposits and by the fee structure with tuition breakup. On the material produced, the explanation was found bona fide and acceptable, so the addition under section 68 was 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 bank account was sustainable.

Analysis: The assessee explained that the cash deposits represented school fees received from students during the academic year. The bank statement showed that the deposits were evenly spread throughout the year, and the fee structure with breakup of tuition fee was also furnished. On the material on record, the explanation was found to be bona fide and acceptable.

Conclusion: The addition of Rs. 40,61,400 under section 68 was deleted and the issue was decided in favour of the assessee.

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