New Delhi, Sept. 21 -- A taxpayer's large cash balance can attract scrutiny from the income-tax department, but a closing cash balance cannot automatically be treated as unexplained money when the underlying income has already been disclosed and the books support the cash trail.

In Ankish Madhan vs ITO, Ward 29(1), Delhi, the Delhi ITAT, comprising Accountant Member M. Balaganesh and Judicial Member Sudhir Kumar, passed its order on 9 September 2026 for assessment year 2016-17 and deleted a Rs.34.8 lakh addition made under Section 68 of the Income-tax Act.

Madhan had reported Rs.34.8 lakh as cash in hand as of 31 March 2016. During the year, he had earned Rs.44 lakh in commission income, including around Rs.35 lakh received in cash. The...