New Delhi, Aug. 13 -- A huge amount of cash deposited in a bank account can attract scrutiny from the Income Tax Department, particularly when the taxpayer has not filed an income tax return (ITR) to explain the source of income.

But a recent Income Tax Appellate Tribunal (ITAT) Delhi ruling shows that a large cash deposit cannot automatically be treated as taxable income if the taxpayer can establish that the money actually belonged to someone else.

According to a report by The Economic Times, a Rohtak-based property dealer, Rathee, faced a tax demand after depositing Rs.54 lakh in cash into his bank account. The Income Tax Department treated the amount as unexplained income after he failed to file his ITR and did not respond to multip...