Rs 41L cash deposit but no ITR: No relief in ITAT

The Income Tax Appellate Tribunal (ITAT) Bangalore recently ruled against Mr. Reddy, a resident of Indiranagar, Bengaluru, for failing to file an Income Tax Return (ITR) within four years of receiving an unexplained cash deposit notice. The taxpayer claimed his income was less than Rs 5 lakh and that he only earned from rent, with his expenses covered by his wife and father, making him unaware of his tax obligations.

Reddy only learned about the tax notice when he applied for a visa to travel abroad. The Income Tax Officer calculated the unexplained cash deposit at Rs 41.69 lakh and unexplained credit at Rs 3.69 lakh, along with Rs 1.5 lakh as business or professional income. Interest and penalties were added on top of these amounts. Reddy contested these charges in the ITAT, but the tribunal dismissed his appeals, citing a delay of approximately 1,480 days for the quantum appeal and 1,298 days for the penalty appeals.

The ITAT held that the reasons provided by Reddy for his inaction were not convincing and did not meet the criteria for condoning the delay. Consequently, the tax, interest, and penalties under the orders are still payable by Reddy.