Big Relief In Credit Card Tax Case !

A case involving high-value credit card payments has reached a major conclusion at the Income Tax Appellate Tribunal (ITAT) in Mumbai. A Mumbai-based individual, who paid ₹13.95 lakh in cash towards a total credit card bill of ₹27.65 lakh, was earlier issued a tax notice by the Income Tax Department. The department questioned the source of the cash, treating it as unexplained income under Section 69A.

The taxpayer claimed the money was received from family members, including his wife, parents, and mother, as personal support. While the lower tax authorities rejected his explanation due to lack of supporting evidence, the ITAT partially accepted his claim. The tribunal confirmed that ₹3 lakh received from his wife was valid, while ₹4.7 lakh was treated as unexplained income. The rest of the disputed amount received partial relief, giving the taxpayer significant relief.