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Informative

‘6kg & 7kg’ Cash Entries Not Proven as ₹13 Lakh: ITAT Reduces Addition to ₹1.30 Lakh Due to Lack of...

Update / Judgement Date

22 Aug 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Income TaxOther Legal Matters

The ITAT has reduced a cash addition from ₹6.7 lakh to ₹1.3 lakh due to a "lack of corroboration" for a "6-7 kg cash entry." The tribunal's decision provides a significant victory for the taxpayer. The ruling clarifies that a tax authority cannot add a cash deposit to a taxpayer's account without a valid reason. The court's decision is a crucial reminder to all tax authorities to follow due process.