https://www.taxtmi.com/caselaws?id=767837 ITAT Lucknow ruled in favor of a retired government servant regarding unexplained cash deposits. The tribunal held that since the assessee earned regular pension income and claimed deposits were from past savings, the explanation should be accepted absent contrary evidence. The AO failed to provide concrete evidence disproving the assessee's claim or allegations of undisclosed expenditure. The tribunal emphasized that once a reasonable explanation is provided, the burden shifts to the AO to prove it incorrect. Mere disbelief or suspicion is insufficient for additions under the Income Tax Act. The appeal was allowed. en-us Mon, 24 Mar 2025 00:00:00 +0530 Wed, 26 Mar 2025 06:50:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767837 ITAT Lucknow ruled in favor of a retired government servant regarding unexplained cash deposits. The tribunal held that since the assessee earned regular pension income and claimed deposits were from past savings, the explanation should be accepted absent contrary evidence. The AO failed to provide concrete evidence disproving the assessee's claim or allegations of undisclosed expenditure. The tribunal emphasized that once a reasonable explanation is provided, the burden shifts to the AO to prove it incorrect. Mere disbelief or suspicion is insufficient for additions under the Income Tax Act. The appeal was allowed. Case-Laws Income Tax Mon, 24 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767837