INCOME TAX21 Sept 2026
₹34.8 lakh cash balance taxed as unexplained money, ITAT deletes addition and explains why declared income matters | Mint
The Income Tax Appellate Tribunal (ITAT) in Delhi deleted a ₹34.8 lakh Section 68 addition. The taxpayer had shown ₹44 lakh commission income, about ₹35 lakh received in cash. The ITAT said the income was already recorded in the books and offered to tax, and the cash book showed no negative balance. If you receive cash income, keep a proper cash book and proof.
Key Statutory Highlights
- The Delhi ITAT deleted the ₹34.8 lakh addition made under Section 68 for assessment year 2016-17.
- The taxpayer had earned ₹44 lakh in commission income, including around ₹35 lakh received in cash, and had offered it to tax.
- The assessing officer had not rejected the books of account, and the cash book showed no negative cash balance during the year.
Actionable Advice for Taxpayers / Founders:Keep your cash book updated as you go and save documents that show where your cash income came from. This can help support your position if the department questions a large closing cash balance, though each case depends on its own facts.
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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