Unexplained Cash Deposits u/s 69A: ITAT Reduces Addition to Rs. 2.5 Lakh due to Partial Explanation of Source

The ITAT has reduced an addition made by the tax department regarding unexplained cash deposits by the assessee. The Tribunal found partial explanation for the source of the deposits, resulting in a reduction of the tax demand. It held that the assessee had provided sufficient evidence regarding some of the deposits, while others remained unexplained. The decision reflects a balanced approach in verifying the authenticity of cash deposits and the need for clear documentation to justify such deposits to avoid excessive tax demands.