The Income Tax Appellate Tribunal in Jaipur has eliminated a tax notice issued against an individual named Ram concerning an unexplained cash deposit of Rs 13.04 lakh. Ram faced regulatory scrutiny after purchasing a property for Rs 20.23 lakh and placing cash into his bank account without filing an initial income tax return. While the Commissioner of Appeals had already removed the inquiry regarding the property investment, the tribunal took the further step of quashing the cash deposit addition on October 6, 2026. The panel accepted evidence that the deposited money had been gifted by his mother prior to the bank transactions.
Key points
A notarised gift deed witnessed by two individuals proved the cash deposits originated fr…: A notarised gift deed witnessed by two individuals proved the cash deposits originated from a maternal gift.
The transaction qualified for tax relief because it occurred between recognized relatives…: The transaction qualified for tax relief because it occurred between recognized relatives under Section 2(41).
Valuation conducted by a registered valuer established that the gift was transferred prio…: Valuation conducted by a registered valuer established that the gift was transferred prior to the bank deposits.
Sources checked by our analysis pipeline: 1
Mr Ram from Mandi Road got entangled in a dispute with the Income Tax Department after he bought a property, deposited a large amount of cash in his bank account but did not file any income tax return. When the Income Tax Assessing Officer (AO) from Jaipur sent him an income tax notice asking to file ITR. The AO already had information from his sources that Ram had purchased a property for Rs 20.23 lakh and deposited Rs 13.04 lakh cash in his bank account.
However, in response to the income tax notice, Mr Ram declared Rs 2.14 lakh income and filed the ITR. Thus the Income tax officer classified his case as suspicious and eventually declared the property investment and cash deposit both as unexplained and started the proceedings against Ram. To reiterate, Ram was charged with evading tax on Rs 20.23 lakh unexplained property investment and Rs 13.04 lakh unexplained cash deposit.
Feeling aggrieved, Ram filed an appeal with the commissioner of appeals (CIT A). The CIT (A) decided to give Ram part relief by deleting the tax…
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