INCOME TAX16 Sept 2026
Taxpayer left ₹38 lakh income out of ITR, paid ₹19.89 lakh tax later; why ITAT cancelled the ₹23.94 lakh penalty | Mint
A Mumbai tax tribunal has cancelled a ₹23.94 lakh penalty on a taxpayer who left ₹38.37 lakh of cash deposits out of his original return. He disclosed the income during scrutiny and paid ₹19.89 lakh in tax. The tribunal said simply calling the omission "misreporting" was not enough to justify a 200% penalty under section 270A for the assessment year 2022-23.
Key Statutory Highlights
- The taxpayer filed his original return on 5 July 2022 declaring income of ₹47.43 lakh, but left out ₹38.37 lakh of cash deposits held in two bank accounts.
- He filed a revised computation on 25 November 2023 and paid ₹19.89 lakh as self-assessment tax, and the Assessing Officer treated the deposits as income from other sources.
- The Mumbai ITAT held that describing the omission as "misreporting" alone was not enough to justify the 200% penalty under section 270A.
Actionable Advice for Taxpayers / Founders:If you find income left out of a return you already filed, disclose it early, pay the tax and interest due, and keep proof of that payment. Speak to a chartered accountant before filing a revised computation or an immunity application, and don't assume a penalty will always be cancelled just because it was here.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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