Unexplained Cash Deposits of ₹14.53 Lakh: ITAT Deletes Addition u/s 68 of Income Tax Act

The ITAT deleted an addition related to unexplained cash deposits, ruling that the income tax authorities had failed to prove the source of the deposits. The case revolved around a taxpayer who had deposited a substantial amount of cash, which was not adequately explained during the investigation. The ITAT ruled that without clear evidence linking the deposits to undeclared income, the addition made by the tax authorities was unjustified. This ruling is a significant reminder that the burden of proof lies with the tax authorities when challenging the source of cash deposits. It also underscores the importance of maintaining proper documentation to support one’s financial transactions.