Bengaluru Man Penalized for Unexplained Cash Deposit of Rs 41 Lakh
A Bengaluru man's claim that his wife and father covered all his expenses led to an unexplained cash deposit of Rs 41.69 lakh, for which he was penalized by the Income Tax Department.
The case dates back to when Mr Reddy, a resident of Indiranagar in Bengaluru, failed to file his income tax returns (ITR) despite earning less than Rs 5 lakh annually from rent. He claimed that he did not check his emails or the e-filing portal and only got to know about the unexplained cash deposit notice when applying for an overseas visa.
The Income Tax Officer added the amount under Section 69A, along with other penalties, leading Reddy to file an appeal in the Income Tax Appellate Tribunal (ITAT) Bangalore. However, his appeal was dismissed on August 17, 2026, due to a delay of approximately 1,480 days in filing the quantum appeal.
The ITAT Bangalore relied on a Supreme Court decision to conclude that a long delay can only be condoned with a satisfactory and credible explanation supported by evidence. Reddy's reasons for not filing his ITRs were deemed as excuses rather than an acceptable explanation, leading to the dismissal of all three appeals.