Bengaluru taxpayer's four-year delay in tax appeal rejected by ITAT
The Income Tax Appellate Tribunal in Bangalore dismissed Reddy's request to waive a nearly four-year delay in appealing tax notices over Rs 41.69 lakh of unexplained deposits.
In 2016 Mrs Nagarathna deposited Rs 25 lakh in cash at the Corporation Bank branch on Nrupathunga Road, prompting the Koramangala tax officer to reopen her file and label the amount unexplained under Section 69, citing a nearby property sale. The addition was upheld by the Commissioner of Appeals, leading her to appeal to the ITAT Bangalore. Her counsel, Dr Sheetal Borkar, presented bank and loan statements showing withdrawals of Rs 13.17 lakh and Rs 11.95 lakh by her and her husband, respectively, saved for a house purchase.
The tribunal, referencing a Karnataka High Court precedent, held that a gap between withdrawals and redeposit does not invalidate the explanation absent concrete proof of undisclosed income. Consequently, the addition was removed and her appeal granted on August 17 2026.
