Man faces Rs 17.18 lakh tax penalty over Rs 55.62 lakh unexplained deposits; ITAT gives relief

An individual who failed to file an income tax return for the assessment year 2016-17 faced a reassessment by the tax department conducted without his participation. On February 15, 2024, the department assessed his total income at Rs 55.62 lakh, treating the amount as unexplained cash deposits and imposing a tax penalty of Rs 17.18 lakh.

Following the assessment, the taxpayer sought legal recourse through the Income Tax Appellate Tribunal (ITAT). The tribunal ultimately granted relief to the man regarding the disputed tax penalty associated with the unexplained cash deposits.