Cash deposit addition remanded for fresh verification after new affidavits and source explanation were produced.

Cash deposit additions require fresh examination where the assessee produces a plausible source explanation supported by additional evidence. The assessee explained the balance deposit through loans from friends and relatives and agricultural income, and affidavits were filed before the Tribunal for the first time. In view of the assessee's profile as a senior citizen, retired government servant and agriculturist, the disputed source of funds was sent back for reassessment, with directions to allow a reasonable opportunity to file supporting material. The addition was therefore restored to the Assessing Officer for fresh adjudication.

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Issues: Whether the addition of cash deposit of Rs. 15 lakh sustained by the first appellate authority required interference or restoration to the Assessing Officer for fresh examination in view of the assessee's explanation and additional evidence.

Analysis: The assessee sought to explain the remaining cash deposit by referring to loans from friends and relatives and regular agricultural income. Affidavits supporting the claim were produced before the Tribunal for the first time and were treated as additional evidence. Considering the assessee's status as a senior citizen, retired government servant, and agriculturist, the Tribunal found it appropriate to examine the source of the disputed deposit afresh at the assessment stage. The Tribunal also directed that reasonable opportunity be granted to furnish supporting material in the set aside proceedings.

Conclusion: The matter relating to the addition of Rs. 15 lakh was restored to the Assessing Officer for fresh adjudication, and the assessee's grounds were allowed for statistical purposes.

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