AO Adds Rs. 5.38 Lakh as Unexplained Cash Deposit: ITAT Confirms Rs. 48,000 Addition as Taxpayer Fails to Prove Source

The ITAT confirmed an addition of ₹48,000 as unexplained cash deposit, as the taxpayer failed to prove the source, but deleted a larger addition of ₹5.38 lakh. The tribunal found that while the taxpayer could not adequately explain the origin of the smaller cash deposit, the larger addition was not sufficiently substantiated by the Assessing Officer. This ruling reflects the principle that tax authorities need to provide evidence for additions, and taxpayers need to substantiate the sources of their deposits.