Uncontroverted affidavit on source of cash deposits defeats unexplained-income addition when no contrary evidence is brought on record.

Cash deposits in a joint bank account could not be treated as unexplained income where the assessee's wife filed an uncontroverted affidavit stating that the deposits came from her income from vocational singing classes. The affidavit was not tested by cross-examination, and no contrary material was produced to disbelieve the explanation. On those facts, the addition rested only on suspicion and was held not sustainable, so the unexplained-money addition was deleted.

---

---

Issues: Whether the addition made on account of cash deposits in the joint bank account as unexplained income was sustainable.

Analysis: The assessee had filed a belated return declaring income and the cash deposits in question were explained as belonging to the assessee's wife, who stated on oath that the deposits were made out of her income from vocational singing classes. The affidavit remained uncontroverted and the wife was not cross-examined. No contrary material was brought on record to disbelieve the explanation. In these circumstances, the explanation for the source of deposits could not be rejected merely on suspicion, and the addition treating the deposits as unexplained money was not justified.

Conclusion: The addition was not sustainable and was directed to be deleted in favour of the assessee.

Ratio Decidendi: An uncontroverted affidavit explaining the source of cash deposits cannot be disregarded in the absence of cross-examination or contrary evidence, and such deposits cannot be treated as unexplained income solely on suspicion.

---