During assessment proceeding, AO noted that assessee had deposited cash on different dates in saving bank account. Assessee claimed to have entered into an agreement for sale of his factory land and had received advance which was deposited in his bank account. However, said agreement was cancelled due to family dispute and amount of advance was refunded to the buyer/company. Assessee was aksed to produce the Director of the Company and also issued summons u/s. 131(1) for his personal attendance. Assessee was unable to produce the original agreement nor the Director. The AO held that out of total cash deposit in assessee’s saving account, a certain amount represented assessee’s unexplained investment out of his undisclosed sources and accordingly added to his total income as he failed to explain satisfactorily sources of such investment. CIT(A) confirmed AO’s order. Tribunal held that, the AO asked assessee for source of total cash deposits made in three different dates, accordingly AO allowed benefit of withdrawals made on various date and sustained addition. Assessee had entered into an agreement for sale and claimed to have received advance. The Purchaser also confirmed this fact that an amount was given to assessee and was duly reflected in balance sheet furnished to AO. Thereafter, assessee also deposited an amount but before that deposits there were withdrawals. In present case, it was not brought on record to substantiate that said withdrawals was utilized by assessee elsewhere and not re-deposited in bank account, so it could be said that said amount was available with assessee for depositing cash. However, assessee could not furnish any proper evidence to satisfaction of AO for remaining said amount and hence Addition made in assessee’s hands appeared to be justified. Addition was made in respect with difference amount between total cash deposit and withdrawals. Remaining addition made by AO and sustained by CIT(A) was deleted. (AY.2009-10 )