{
  "id": 11727404,
  "title": "How landlord won tax relief on Rs 14.96 lakh demonetisation cash deposit",
  "url": "https://urgent.news/2026/10/03/how-landlord-won-tax-relief-on-rs-14-96-lakh-demonetisation-cash",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-03T16:31:22.000Z",
  "source": {
    "name": "Times of India",
    "slug": "times-of-india",
    "url": "https://timesofindia.indiatimes.com/business/india-business/he-deposited-rs-14-96-lakh-cash-during-demonetisation-landlord-faced-unexplained-money-tax-notice-under-section-69a-but-itat-bangalore-deletes-addition-on-account-of-rental-income/articleshow/134661840.cms"
  },
  "original_language": "en",
  "account": "In a recent case in Bangalore, a landlord successfully won tax relief on a large cash deposit made following the introduction of demonetisation. The landlord had collected rental income in cash from several properties and had deposited around Rs 14.96 lakh into his bank account during this period. This triggered scrutiny from the Income Tax Department, which required the landlord to explain the origin of the deposited cash.\n\nThe landlord provided extensive documentation, including cash books, bank statements, cash-flow statements and financial records, demonstrating that the cash deposits were a result of his legitimate rental income and advances received from tenants. He submitted that the cash was a continuous source of funds, with an opening balance of Rs 10,05,793 in his account prior to the deposits.\n\nThe Income Tax Appellate Tribunal (ITAT) in Bangalore ultimately ruled in favor of the landlord, dismissing the tax department's addition of Rs 14,96,500 to his taxable income. The tribunal clarified that disclosed rental receipts can be considered as a source of cash for deposits made later, even if those rental earnings had already been taxed. The ITAT also disagreed with the notion that rental income could not be a source of funds simply because it had already been taxed under the \"Income from House Property\" head.\n\nThe ruling emphasized that when a taxpayer can demonstrate a continuous cash flow and provide supporting documentation, the tax department must assess the explanation objectively. The case highlights the importance of maintaining clear records and explanations for cash transactions, particularly during periods of economic change such as demonetisation.",
  "summary": "The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) recently held that rental income already disclosed to the income tax authorities can be considered as an identifiable source of cash deposited into a bank account at a later date. Even where a landlord claims to have collected rent in cash, the subsequent deposit of that money cannot be disregarded merely because the rental earnings…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}