Unexplained cash deposits deleted where prior withdrawals, past savings, and bank records explained the source of funds.

Cash deposits in the bank account were not treated as unexplained income where the assessee showed prior cash withdrawals, regular income from teaching and agriculture, and accumulated capital balances supporting availability of funds. The bank records showed withdrawals immediately before corresponding deposits, and the Revenue produced no material to show that the cash had been deployed elsewhere. On these facts, the immediate source of the deposits stood explained, so the addition was deleted.

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Issues: Whether the addition made as unexplained income on account of cash deposits in the bank account was liable to be deleted when the assessee explained the deposits as arising from prior cash withdrawals and past savings.

Analysis: The assessee's regular income from teaching and agriculture, the reflected accumulation in the capital accounts over the years, and the bank statement showing cash withdrawals immediately before corresponding cash deposits supported the explanation of availability of funds. The revenue did not bring any material to show that the withdrawn cash had been used elsewhere. In these circumstances, the immediate source of the cash deposits stood explained and the deposits could not be treated as unexplained income.

Conclusion: The addition was deleted and the assessee succeeded on this issue.

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