INCOME TAX18 Sept 2026
Father-in-law's diary showing cash movements in a homemaker's name led to ₹33.50L tax addition; ITAT grants relief
A homemaker got a ₹33.50 lakh tax addition after a search found diary entries in her name. The Ahmedabad ITAT deleted it, noting she lives with her father-in-law and handing cash to the home-maker for safekeeping is normal in a joint family. She has no separate income. Keep records of family cash movements.
Key Statutory Highlights
- The income tax officer made a ₹33.50 lakh addition under Section 69C on a homemaker's income after handwritten diaries with entries in her name were seized in a search at her father-in-law's home.
- The Ahmedabad ITAT deleted the addition, saying it is normal in a joint family for cash brought home to be handed to the home-maker of the family for safekeeping.
- The taxpayer showed her father-in-law's cash withdrawals recorded in the same seized material, totalling about ₹6.72 crore from FY 2009-10 to FY 2020-21, against the addition made in her hands.
Actionable Advice for Taxpayers / Founders:If family cash is kept or moved in your name, maintain a simple written record of who gave the money and when. Speak to your CA before assuming such diary entries will be accepted in every case.
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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