New Delhi, Sept. 1 -- The Income Tax Appellate Tribunal (ITAT), Mumbai, has deleted an Rs.8.87 lakh addition made under Section 69A of the Income-tax Act after accepting a taxpayer's explanation that cash found during a search belonged to different members of his family.

The case involved Pawan Onkardas Chandak, a Pune-based taxpayer. In an order dated 20 July 2026, the Mumbai bench of the ITAT held that tax authorities cannot assess household cash without considering surrounding circumstances, normal human behaviour and prevailing social practices. The case was Pawan Onkardas Chandak v. ACIT, Central Circle 6(1), Mumbai, ITA No. 4183/Mum/2026, for assessment year 2022-23.

The Income Tax Department conducted a search under Section 132 o...