Income Tax 3 August 2026
Tax Delay Condoned
The Income Tax Appellate Tribunal has condoned a 210-day delay and given a taxpayer a fresh opportunity to prove the source of their cash deposits made during demonetisation, a significant decision that could impact similar cases, the taxpayer had deposited a substantial amount of cash in their bank account during the demonetisation period and was later issued a notice by the income tax department to explain the source of the funds
The ITAT has granted a taxpayer a fresh opportunity to prove the source of their cash deposits.
- The taxpayer had deposited a substantial amount of cash in their bank account during the demonetisation period.
- They were later issued a notice by the income tax department to explain the source of the funds.
The taxpayer can now provide evidence to support their claim, a significant development in the case, it is likely to have implications for similar cases where taxpayers have been issued notices for unexplained cash deposits
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