Property Sale Proceeds and Bank Deposits Under Section 68 Scrutiny: Cash Credits Partially Justified Through Documentation

ITAT partially allowed the appeal concerning unexplained cash credits under Section 68. The Tribunal deleted additions of 1.57 crore cash deposit in Andhra Bank, accepting assessee's explanation regarding property transaction supported by sale-purchase deed. Cash deposits in Chartered Sahakari and Karnataka State Apex Co-operative Banks were justified through documented withdrawals and property sale proceeds. Addition of 10 lakh from KR Shelter was confirmed as assessee failed to substantiate its accounting treatment. ITAT deleted addition of 2.45 lakh alleged as interest income, concluding it represented an instrument transaction rather than interest credit. The Tribunal emphasized the common practice of oral agreements in real estate transactions and noted Revenue's failure to conduct independent inquiries despite available details. .....

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