New Delhi, Sept. 5 -- A large cash deposit of Rs.25 lakh made by a Bengaluru resident sparked an income tax dispute after authorities questioned the source of the money in her bank account. It all began when Madegonda Nagarathna, who lives in the city and works with BESCOM, deposited the sum at Corporation Bank's Nrupathunga Road branch on June 29, 2016, nearly a decade ago.

The income tax assessing officer (AO) from Koramangala became suspicious of the deposit and decided to reopen Nagarathna's file. During the review, the AO found that she had sold a property just a few weeks before making the Rs.25 lakh cash deposit. Based on the timing, the tax officer concluded that Nagarathna must have sold the property in cash and subsequently dep...