Unexplained cash deposits under section 69A restored for fresh adjudication after assessee sought final opportunity to produce evidence.

Cash deposits were treated as unexplained under section 69A because supporting evidence for the claimed sources was not fully furnished. The assessee sought one final opportunity to place details of earlier withdrawals and receipts from family members before the first appellate authority. The Tribunal, in the interest of justice, restored the matter for fresh adjudication and directed that one final opportunity be granted so the source of the deposits could be examined on facts and law. The addition was therefore neither finally sustained nor deleted at that stage.

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Issues: Whether the addition made under section 69A of the Income-tax Act, 1961 on account of cash deposits in the bank account was sustainable, or whether the matter required restoration for fresh adjudication.

Analysis: The addition arose from cash deposits of Rs. 25,13,000/- which the assessee claimed were sourced from earlier withdrawals and receipts from family members. The first appellate authority sustained the addition because supporting documentary evidence was not fully furnished. The Tribunal noted that the assessee sought one final opportunity to place the requisite details and documents before the first appellate authority to substantiate the source of deposits. In the interest of justice, the Tribunal found it appropriate to restore the matter for fresh consideration with a direction to give one final opportunity and decide the issue on facts and law.

Conclusion: The addition under section 69A was not finally upheld or deleted and the issue was remanded to the first appellate authority for fresh adjudication after granting one final opportunity to the assessee.

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