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₹25L bank deposit lands Bengaluru woman in tax trouble; officer links it to property sale — here's how she won
Mint 1 hr ago·5 Sept 2026, 3:10 am
Income tax authorities in Bengaluru recently questioned a woman regarding a cash deposit of ₹25 lakh. The tax department treated this amount as unexplained income, adding it back to her tax liability. This action is common when cash deposits do not align with the taxpayer's declared income sources.
However, the Income Tax Appellate Tribunal (ITAT) ruled in her favour. The tribunal accepted her explanation that the funds came from the sale of her property. By accepting her explanation, the ITAT cancelled the tax demand, highlighting the importance of maintaining proper documentation to prove the source of cash deposits.
For investors, this case underscores the need for meticulous record-keeping. It serves as a reminder that while cash deposits can trigger scrutiny, a valid explanation supported by evidence can often resolve such disputes. Investors should ensure all financial transactions are properly documented and reported to avoid similar issues.
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