Rs 41.69 lakh cash deposit, no ITR: He said wife paid expenses; ITAT rejects plea
The Income Tax Appellate Tribunal (ITAT) in Bangalore rejected a taxpayer's plea to condone a four-year delay in challenging a tax notice regarding unexplained cash deposits. The taxpayer claimed he was unaware of the notice until he applied for a visa, but the tribunal upheld the tax department's assessment.
Why it matters
This case underscores the legal necessity for taxpayers to maintain updated tax filings and monitor e-filing portals to avoid severe financial penalties and legal complications.
When filing for a visa to fly abroad, an individual claimed he discovered he had a tax notice against his name that was due to cash deposits which the Income Tax Department saw as unexplained.The Income Tax Appellate Tribunal (ITAT) Bangalore has declined to condone the delay of nearly four years in the case concerning unexplained cash deposits. The taxpayer told the tribunal that he became aware of the tax notice only when he was seeking a visa to travel overseas.Rs 41 lakh cash deposit but less than Rs 5 lakh income: What the case was aboutThe case involved Reddy, a resident of Indiranagar, Bengaluru, who maintained that his annual income was below Rs 5 lakh and that rent was his only source of income.
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