INCOME TAX7 Sept 2026
₹32 lakh cash deposit under tax scrutiny: ITAT ruling highlights why maintaining proof of money source is crucial | Mint
A jewellery maker deposited ₹32 lakh cash during demonetisation, and tax authorities treated most of it as unexplained. The Income Tax Appellate Tribunal gave partial relief, accepting ₹2.84 lakh linked to her mother-in-law's gold sale because she filed confirmations. Other claims failed because sale memos lacked customer names. Lesson: keep clear evidence of where your cash comes from.
Key Statutory Highlights
- The taxpayer deposited ₹32 lakh in cash on 10 November 2016 during demonetisation.
- The ITAT accepted ₹2.84 lakh linked to her mother-in-law's gold sale because confirmations were filed.
- The tribunal rejected claims where cash-sale memos had no customer names and lacked purchaser confirmations.
Actionable Advice for Taxpayers / Founders:Keep proper documents like sale confirmations with buyer details whenever you deposit large cash amounts. Proof of the source can help you avoid tax additions.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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