A Haryana-based taxpayer who reported a total income of ₹1,79,160 for Assessment Year 2017-18, along with agricultural income of ₹3 lakh, faced significant additions during income-tax scrutiny.
During the assessment proceedings, the Assessing Officer identified substantial cash deposits and unsecured loans running into crores of rupees. The taxpayer was also unable to adequately substantiate the declared agricultural income with supporting documentary evidence.
Despite statutory notices, the required information and supporting documents were reportedly not furnished during the assessment proceedings. Consequently, the Assessing Officer completed the assessment under Section 143(3) of the Income-tax Act, 1961, determining the taxpayer’s total income at ₹11,23,87,670, representing an addition of approximately ₹11.22 crore.
The matter subsequently reached the Income Tax Appellate Tribunal (ITAT). In a significant development, the taxpayer has been granted a final opportunity to substantiate his claims and explain the issues forming the basis of the substantial income addition. The relief provides the taxpayer an opportunity to place the relevant evidence and explanations on record before the tax dispute is finally determined. CASansaar