Unexplained money under section 69A requires verification of bank statements and cash records before treating opening cash balance as addition.

Opening cash balance cannot be treated as unexplained money under section 69A without verifying the bank statements and cash records. The assessee produced bank account statements and relevant ledgers, and the factual availability of cash at year-end required examination of those supporting materials. The matter was therefore sent back for verification by the Assessing Officer on the basis of the bank statements and related records, and the addition was not finally decided on merits.

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Issues: Whether the addition made by treating the opening cash balance as unexplained money under section 69A of the Income-tax Act, 1961 could be sustained without verification of the bank statements and cash records.

Analysis: The assessee produced bank account statements and relevant ledgers before the Tribunal. In view of these records, the factual availability of cash at the end of the year required verification. The matter therefore called for examination of the supporting material by the Assessing Officer rather than a final determination on the existing record.

Conclusion: The issue was restored for verification of the cash availability on the basis of the bank statements and related records, and the addition was not finally adjudicated on merits.

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