New Delhi, Nov. 2 -- Making large cash deposits in you bank account can raise eyebrows and attract the attention of the Income Tax Department, and a recent case is the proof of that.

The Income Tax Appellate Tribunal (ITAT) in Delhi has in a significant ruling quashed a six-year-old case pertaining to a large bank transaction that came under the scrutiny of the tax department and turned into a full-blown tax battle.

The trouble began when a taxpayer, one Mr. Kumar, deposited an amount of Rs.8.68 lakh in his bank account and received an income tax notice. Initially, the taxman regarded the case as a simple case of "limited scrutiny" - an assessment meant to only verify the source of the cash deposit.

However, the Assessing Officer in th...