01-May-2026
Taxation
 
Rs 13 lakh cash payment for credit card bill triggers tax notice; man wins case after ITAT accepts 'family gift' explanation
01-May-2026

When Mr Mehta from Shivaji Park, Mumbai, Maharashtra filed his income tax return (ITR), showing an income of Rs 6.3 lakh after paying off his credit card bill of Rs 27.65 lakh, which included a cash payment of Rs 13.95 lakh, the Income Tax Department issued him a notice for unexplained cash. To explain this cash, Mehta filed a court affidavit saying that his family members out of their love and affection towards him, gave him Rs 15.5 lakh cash, of which he used Rs 13.95 lakh to pay the credit card bill: Wife: Rs 3 lakh Father: Rs 8 lakh Mother: Rs 4.5 lakh

News Source:- The Income Tax officer however, was not satisfied with this explanation and asked Mehta to give verifiable evidence to substantiate his claim and also told him that an affidavit is not a conclusive proof of source of funds as the onus is on him to prove t
 
 
 

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