ITAT Delhi favours taxpayer in Rs 8.68 lakh cash-deposit case

The Income Tax Appellate Tribunal (ITAT) Delhi-bench ruled in favour of a taxpayer in a case involving a cash deposit of ₹8.68 lakh, rejecting the Revenue’s contention that the deposit should automatically be treated as unexplained income. The tribunal held that where funds can be satisfactorily traced to lawful source, they cannot be presumed as income. The decision reinforces the burden-of-proof contours in tax-litigation and signals a favourable precedent for taxpayers engaged in cash-flow disclosures and documentation compliance.