New Delhi, Nov. 3 -- The Income Tax Appellate Tribunal (ITAT), Hyderabad, has ruled in favour of a woman taxpayer after the Income Tax Department treated cash expenditure of more than Rs.8.66 crore found in documents recovered during a search at her residence as unexplained income.

The tribunal held that the expenditure related to a real estate company's business and could not be added to her taxable income without establishing her connection with the transactions.

In its order dated 9 October 2026 in ACIT, Central Circle-2(2), Hyderabad vs Chinthakunta Ramesh Sridevi (ITA Nos. 698 and 699/HYD/2022), the tribunal dismissed the tax department's appeals for assessment years 2017-18 and 2018-19.

The dispute arose after a search and seizur...