New Delhi, Oct. 7 -- A taxpayer who paid Rs.10.90 lakh towards credit-card dues in cash faced income-tax scrutiny after the department questioned the source of the money. In Shrawan Kumar Prajapat vs ITO (ITA No. 1535/JPR/2025), the Jaipur bench of the Income Tax Appellate Tribunal (ITAT) examined whether the taxpayer had to prove that each cash withdrawal from his bank account directly funded a particular credit-card payment.

The tribunal ruled in favour of the taxpayer, holding that a one-to-one match between every bank withdrawal and credit-card payment was not necessary when the taxpayer could demonstrate sufficient cash withdrawals and there was no evidence that the money had been spent elsewhere. The ruling offers an important less...