Unexplained bank credits and time deposits require fresh examination where supporting bank statements and NEFT trail are produced.

Additions for alleged unexplained time deposits and bank credits were not finally sustained because the assessee produced stamped bank statements and material indicating that credits in the bank account came through NEFT from identifiable parties. The factual explanation had not been properly examined earlier, so the matter was remanded for fresh adjudication after reappreciation of all evidence and grant of due opportunity of hearing.

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Issues: Whether the additions made on account of alleged unexplained time deposits and bank credits were liable to be sustained or the matter required restoration for fresh consideration.

Analysis: The additions had been made because the original bank statements relied upon by the assessee were not accepted before the DRP and, on the facts then available, the explanation regarding the source of the deposits and credits was not properly examined. The assessee produced stamped bank statements before the Tribunal and also pointed to material suggesting that the credits in the Kotak Mahindra Bank account were received through NEFT from identifiable parties. In these circumstances, and in the interest of justice, the existing factual position required reappreciation by the assessing authority after considering all evidences and granting due opportunity of hearing.

Conclusion: The additions were not finally affirmed and the matter was remanded to the Assessing Officer for fresh adjudication in accordance with law.

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