INCOME TAX28 Sept 2026
Can money collected for someone else be taxed as your income? ITAT ruling on ₹20.33 lakh cash deposits | Mint
An 89-year-old retired principal said ₹20.33 lakh deposited in his accounts was hostel fees collected for an education society, leaving only ₹2,251 as surplus. The Income Tax Appellate Tribunal (ITAT) sent the case back to the tax officer for fresh verification. If you deposit money collected for others in your own account, keep receipts and records ready to prove it was never your income.
Key Statutory Highlights
- The taxpayer deposited ₹20.33 lakh in cash into two Bank of India accounts at Tiptur, and the case relates to assessment year 2017-18.
- The Assessing Officer treated the entire ₹20.33 lakh as unexplained money under section 69A of the Income-tax Act.
- The ITAT restored the matter to the Assessing Officer for a fresh examination of the underlying records.
Actionable Advice for Taxpayers / Founders:If you collect fees or funds for a society, trust or school and route them through your personal bank account, keep the original receipts, collection records and a full income-and-expenditure statement handy, so you can show the money was never your own income.
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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