The assessee explained the source of cash deposits as contract receipts, agricultural income, opening cash balance, bank withdrawals and past savings. The Assessing Officer partly accepted the explanation but sustained an addition under section 68 for want of supporting documentary evidence and levied penalty under section 271(1)(c). The Tribunal held that the addition was based substantially on estimation and the assessee’s explanation had not been found to be false or bogus. Further, the Assessing Officer failed to specify whether the penalty was for concealment of income or for furnishing inaccurate particulars of income. In the absence of a clear charge and as the explanation was bona fide, the penalty was deleted.  (AY. 2008-09)