New Delhi, Aug. 20 -- Withdrawing a large amount of cash from a bank account and depositing it again months later can raise questions from the Income Tax Department. But a gap between the withdrawal and redeposit does not, by itself, establish that the later deposit is unexplained income.

In a recent ruling, the Income Tax Appellate Tribunal (ITAT), Amritsar Bench, deleted a Rs.2.33 crore addition made in the case of Bhupendra Flour Mills Pvt. Ltd. The tribunal found that the company had accounted for the earlier cash withdrawals and that the Revenue had not established that the withdrawn money had been used elsewhere.

The case relates to Assessment Year 2017-18 and involves cash deposited during the 2016 demonetisation period.

Accordi...