Section 68 cash deposit explanation accepted where debtor receipts and outstanding balances were substantiated, and addition deleted.

Cash deposited in a bank account was examined under section 68, with the assessee explaining that the receipts were from debtors against past sales and furnishing a party-wise bifurcation of the amounts received and the outstanding balances. As the revenue did not dispute those details and brought no contrary evidence on record, the explanation was accepted and the addition was deleted.

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Issues: Whether the addition of Rs. 25,66,000 made under section 68 on account of cash deposited in the bank account was sustainable.

Analysis: The assessee explained that the cash represented amounts received from debtors against past sales and furnished a bifurcation showing the parties from whom the amounts were received and the outstanding balances. These details were not disputed by the revenue authorities, and no contrary evidence was brought on record.

Conclusion: The explanation was accepted and the addition was deleted.

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