Section 69A cash deposit dispute: family corpus explanation accepted, and the unexplained income addition was deleted.

Cash deposits made during the demonetisation period were examined under section 69A of the Income-tax Act, 1961. The assessee's explanation that the deposits came from a family corpus created by the late mother, supported by an affidavit and surrounding circumstances, was accepted as credible, including the linkage to wedding expenses and the asserted source of funds. As the Revenue did not effectively rebut this specific factual defence, the deposits were not established as unexplained. The addition under section 69A was therefore deleted.

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Issues: Whether the addition made under section 69A of the Income-tax Act, 1961 in respect of cash deposits during the demonetisation period was sustainable.

Analysis: The assessee explained that the cash deposited represented money received from the family corpus created by the late mother, supported by an affidavit and surrounding circumstances. The explanation was also linked to the wedding expenses and the asserted source of funds, while the Revenue did not effectively rebut the specific factual defence. In these circumstances, the explanation was treated as credible and the unexplained nature of the deposit was not established.

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

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