ITAT deletes ₹3.69 crore tax addition in bank deposit case
In short
The Income Tax Appellate Tribunal has removed a ₹3.69 crore tax addition against a woman who handled payments between bangle traders through her bank account.
It said the deposits could not be treated as her income just because the money passed through her account.
What the reporting says
The Income Tax Appellate Tribunal deleted a ₹3.69 crore tax addition against a woman who had deposited money in her bank account while facilitating payments between bangle traders. The tribunal ruled that the full set of deposits could not be treated automatically as her income. The decision limits the tax demand tied to those bank transactions.
Why it matters
The ITAT’s ruling concerns a woman who facilitated payments between bangle traders and faced a ₹3.69 crore tax addition on deposits in her bank account. By deleting the addition, the tribunal accepted that money routed through an account is not automatically taxable as the account holder’s income. The decision is relevant for taxpayers and tax authorities handling intermediary payment flows.