{
  "id": 13354072,
  "title": "Man faces Rs 17.18 lakh tax penalty over Rs 55.62 lakh unexplained deposits; ITAT gives relief",
  "url": "https://urgent.news/2026/10/10/man-faces-rs-17-18-lakh-tax-penalty-over-rs-55-62-lakh-unexplained",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-10T06:37:24.000Z",
  "source": {
    "name": "Times of India",
    "slug": "times-of-india",
    "url": "https://timesofindia.indiatimes.com/business/india-business/man-did-not-file-itr-faced-rs-17-18-lakh-penalty-over-alleged-rs-55-62-lakh-unexplained-cash-deposits-itat-mumbai-deletes-penalty-because-tax-officer-invoked-wrong-provision/articleshow/134837562.cms"
  },
  "original_language": "en",
  "account": "A man in Mumbai is facing a significant tax penalty after the Income Tax Appellate Tribunal (ITAT) ruled that the tax officer improperly imposed the penalty under the wrong section of the Income Tax Act. The case involves unexplained cash deposits totaling Rs 55.62 lakh, which were assessed by the department without the taxpayer's participation. The tribunal found that the assessment order did not include the necessary direction to initiate penalty proceedings under Section 271(1)(c), despite the officer recording the initiation of proceedings under Section 271AAC. This distinction in provisions is crucial, as initiating proceedings under one does not automatically trigger the other. The tribunal also noted the absence of a clear link between the penalty order and the assessment order, further supporting the man's challenge.",
  "summary": "A man had not filed an income tax return for assessment year 2016-17. The tax department subsequently completed a reassessment without his participation and, on February 15, 2024, assessed his total income at Rs 55.62 lakh. The amount was treated as unexplained cash deposits in a bank account that the department attributed to him.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}