Rs 2 cr deposit, no ITR, Rs 2.51 cr addition; ITAT quashes case due to 5 day delay
The Income Tax Appellate Tribunal (ITAT) in Chennai quashed a tax reassessment case involving a Rs 2.51 crore addition because the tax department missed the statutory deadline by five days. The case centered on a taxpayer who failed to file returns for the 2015-16 assessment year.
Why it matters
This ruling highlights the strict adherence to procedural timelines required by tax authorities and provides a precedent for taxpayers challenging late reassessment notices.
You don’t file your income tax return for an assessment year and some years after that the tax department sends you a notice over unexplained income for that AY. What happens then?Recently, the Income Tax Appellate Tribunal (ITAT), Chennai, has quashed a reassessment involving Rs 2.51 crore additionals after holding that the Income Tax Department had issued the reopening notice after the statutory time limit had already expired.The case concerned assessment year 2015-16 and the changes brought to the law governing reassessment notices from April 1, 2021.What the case is aboutA man did not file his income tax return for the assessment year 2015-16.
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