Plant 500 trees, explain Rs 11.22 cr additional income

This Haryana man's case was picked up for scrutiny, and during the proceedings the Assessing Officer discovered substantial cash deposits, unsecured loans worth crores, and discovered that the Rs 3 lakh agricultural income wasn't substantiated by supporting evidence.

Key points

• When filing his income tax return (ITR) for Assessment Year 2017-18, declared an income of Rs 1, 79, 160 along with an agricultural income of Rs 3 lakh, a Haryana resident.
• Rs 1.79 lakh income in his ITR but Rs 11.22 crore continued: What happened?
• Son becomes NRI, gifts shares worth Rs 30 lakh to father; should this be disclosed in ITR?

What happened

When filing his income tax return (ITR) for Assessment Year 2017-18, declared an income of Rs 1, 79, 160 along with an agricultural income of Rs 3 lakh, a Haryana resident. Things didn't end there, and his case was picked up for scrutiny, resulting in an addition of a massive Rs 11.22 crore to his income. Statutory notices were additionally issued to the Haryana man; even so, he did not furnish the requisite details and supporting documentary evidence, according to the assessment order. This resulted in an assessed total income of Rs 11, 23, 87, 670 under Section 143(3) of the Income-tax Act, 1961. Nevertheless, he has now been given a rather rare and one final opportunity to substantiate his case against the Rs 11.22 crore income addition. Read on to know what happened and how the man secured this chance.

Since the case was selected for scrutiny, the Assessing Officer, during proceedings, discovered substantial cash deposits, unsecured loans worth crores, and discovered that the Rs 3 lakh agricultural income wasn't substantiated by supporting evidence. Son becomes NRI, gifts shares worth Rs 30 lakh to father; should this be disclosed in ITR? What taxpayers must do to avoid tax notices.

The bottom line

For now, plant 500 trees, explain Rs 11.22 cr additional income remains the part of the story worth watching, and further updates are likely as more details are confirmed.