Unexplained cash deposits cannot be added under section 69A when supported by sale documents and matching bank entries.

Cash deposits corroborated by a registered sale deed, receipt and matching bank entries could not be treated as unexplained where the revenue failed to rebut the primary evidence. A system-generated invalid return did not justify ignoring the documentary record. The addition under section 69A was therefore deleted.

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Issues: Whether cash deposits treated as unexplained under section 69A of the Income-tax Act, 1961 were liable to be added when the assessee explained them as sale proceeds supported by a registered sale deed, receipt, and matching bank entries.

Analysis: The assessee produced the registered sale deed and annexed receipt showing receipt of cash from the purchaser, and the bank statement reflected deposits matching those cash receipts. The revenue did not dispute the authenticity of the primary documents or disprove the explanation. A system-generated invalid return could not, by itself, justify ignoring the documentary evidence or treating the deposits as unexplained.

Conclusion: The addition under section 69A was not sustainable and was deleted in favour of the assessee.

Ratio Decidendi: Where an assessee's explanation for a cash deposit is corroborated by credible primary documents and matching bank entries, and the revenue fails to rebut that evidence, no addition under section 69A is warranted.

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