Bengaluru Man's Unexplained Cash Deposits Worth Rs 41 Lakh Raise Tax Department Scrutiny

A Bengaluru resident faced trouble after claiming to have discovered a tax notice against his name while applying for an overseas visa. The Income Tax Appellate Tribunal (ITAT) Bangalore declined to condone a delay of nearly four years in the case concerning unexplained cash deposits.

The individual, who wished to remain anonymous, maintained that his annual income was below Rs 5 lakh and that rent was his only source of income. However, he claimed not to have filed income tax returns (ITRs) or regularly checked his emails or the income tax e-filing portal due to limited understanding of income-tax proceedings.

The Income Tax Officer treated Rs 41.69 lakh as unexplained cash deposits under Section 69A and added Rs 3.69 lakh as unexplained credit, Rs 1.5 lakh as business or professional income, and levied interest and penalty proceedings were initiated. The Commissioner of Appeals (CIT A) upheld the additions as well as the penalties.

The ITAT Bangalore found that the reasons given by the individual for the prolonged delay amounted to excuses rather than a sufficiently supported explanation. It therefore upheld the decision not to condone the delay and dismissed all three appeals as time-barred.