Rs 2 cr deposit, no ITR, Rs 2.51 cr addition; ITAT quashes case due to 5 day delay

The Income Tax Appellate Tribunal (ITAT) in Chennai has quashed a reassessment case involving an addition of Rs 2.51 crore, which stemmed from a Rs 2 crore bank deposit made without a corresponding Income Tax Return (ITR).

The tribunal ruled in favor of setting aside the case after determining that the Income Tax Department had issued the reopening notice after the statutory time limit to do so had already expired.

The decision centers on procedural compliance, resulting in the dismissal of the tax addition due to a five-day delay by the department in issuing the notice.