ITAT Allows Appeal, Deletes Unexplained Cash Addition of Rs.3.45 Lakh Citing Agricultural Income & Bank Withdrawal Proof

The Income Tax Appellate Tribunal (ITAT) allowed the assessee's appeal and deleted an unexplained cash addition, citing proof of agricultural income and bank withdrawals. The assessee had provided evidence to demonstrate that the cash deposits in question were sourced from exempt agricultural income and legitimate withdrawals from their bank accounts. The ITAT accepted this evidence, overturning the Assessing Officer's decision to treat the cash deposits as unexplained income. This ruling underscores the importance of providing adequate documentary evidence to support the source of cash deposits and the acceptance of agricultural income as a valid source.