ITAT overturns Rs 17 lakh tax penalty on unexplained deposits

A taxpayer who did not file an income tax return for the 2016-17 assessment year faced reassessment proceedings. The Income Tax Department, concluding these proceedings without his participation, assessed his income at Rs 55.62 lakh in February 2024. This sum was categorized as unexplained cash deposits in a bank account linked to him. The Income Tax Appellate Tribunal has now granted him relief by overturning the associated penalty of Rs 17.18 lakh.