https://www.taxtmi.com/caselaws?id=404405 Cash deposits in bank accounts were treated as unexplained income because the assessee did not substantiate the claim that they represented business receipts of the assessee, his wife, or his mother. However, the bank statements showed repeated withdrawals and redeposits during the relevant period, indicating a circulating fund rather than fresh unexplained credits at each entry. The opening balance was also required to be excluded while computing the unexplained portion. Accordingly, the addition was not sustainable on the aggregate of all deposits and was restricted to the peak amount, with the opening balance excluded, to that extent in favour of the assessee. en-us Wed, 17 Feb 2021 00:00:00 +0530 Tue, 23 Feb 2021 09:21:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=404405 Cash deposits in bank accounts were treated as unexplained income because the assessee did not substantiate the claim that they represented business receipts of the assessee, his wife, or his mother. However, the bank statements showed repeated withdrawals and redeposits during the relevant period, indicating a circulating fund rather than fresh unexplained credits at each entry. The opening balance was also required to be excluded while computing the unexplained portion. Accordingly, the addition was not sustainable on the aggregate of all deposits and was restricted to the peak amount, with the opening balance excluded, to that extent in favour of the assessee. Case-Laws Income Tax Wed, 17 Feb 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=404405