New Delhi, Sept. 7 -- A taxpayer's explanation for a Rs.32 lakh cash deposit made during the 2016 demonetisation period has received partial relief from the Income Tax Appellate Tribunal (ITAT), after it accepted Rs.2.84 lakh linked to the sale of gold by her mother-in-law.

The Panaji bench of the ITAT, in Salama Mahmadsalim Dafedar v. Income Tax Officer, for assessment year 2017-18, held that the taxpayer was entitled to credit for the amount because the gold sale by her mother-in-law was supported by confirmations. The order was pronounced on 3 September 2026.

The ruling also highlights the importance of identifying the source of cash. The tribunal rejected another part of the taxpayer's explanation because the cash-sale memos produce...