2 weeks ago
Delhi ITAT deletes ₹3.74 lakh penalty for non-filed ITR
Some grown-ups have to pay taxes on the money they earn from their jobs.
One worker in India earned more than 30 lakh rupees in a year.
He did not send in his tax form on time because he changed jobs and could not get all his papers.
The tax office found out and asked him to file his return.
He then told them about all his income, which was about 30 lakh rupees.
The tax office checked his numbers and agreed they were correct.
But they still fined him about 3.74 lakh rupees for not filing on time.
A special tax court called the ITAT looked at the case.
The court said there was no cheating because he told the truth and the tax office already had his information.
So the court cancelled the fine, but reminded people that they should still file their tax forms on time.
The Delhi Income Tax Appellate Tribunal deleted a ₹3.74 lakh penalty imposed on a salaried taxpayer who did not file his income tax return for assessment year 2019-20 despite earning over ₹30 lakh.
The taxpayer, Aggarwal, failed to file his return under section 139(1) for financial year 2018-19, saying he changed jobs and could not obtain Form 16 from both employers before the deadline.
After the Income Tax Department reopened the assessment and issued a notice under section 148, Aggarwal filed a return declaring total income of ₹30,22,900, which the Assessing Officer accepted without any addition.
The Assessing Officer imposed the penalty under section 270A, treating the entire declared income as under-reported because the original return had not been filed.
The ITAT held there was no under-reporting, citing section 270A(6)(a) for bona fide explanations and noting the salary and TDS details were already available to the department through Form 26AS.
- Who
- Salaried taxpayer Aggarwal and the Delhi Income Tax Appellate Tribunal (ITAT)
- What
- The ITAT deleted a ₹3.74 lakh penalty imposed for not filing an income tax return despite a salary of more than ₹30 lakh
- Where
- Delhi, India
- When
- Assessment year 2019-20; the reassessment order under section 148A(d) was passed on 19 April 2023
- Why
- The income declared in response to the reassessment notice was accepted in full without any addition, so there was no under-reporting of income
ITAT / Taxpayer Position
Income Tax Department Position
Under-reporting of income
ITAT / Taxpayer Position
No under-reporting occurred because the declared income of ₹30,22,900 was accepted in full without any addition or variation.
Income Tax Department Position
The entire declared income was under-reported because the taxpayer failed to file his original return under section 139(1).
Need for reassessment notice
ITAT / Taxpayer Position
The taxpayer provided a bona fide explanation, and the salary and TDS information was already available to the department through Form 26AS.
Income Tax Department Position
Had the section 148 notice not been issued, the taxpayer would not have filed his return and the income could have escaped assessment.
Key facts
- Taxpayer
- Aggarwal (salaried individual)
- Salary income (FY 2018-19)
- More than ₹30 lakh
- Declared total income
- ₹30,22,900
- Penalty imposed
- ₹3,74,072 (50% of tax on the amount treated as under-reported)
- Penalty provision
- Section 270A of the Income Tax Act
- Reassessment order
- Section 148A(d) order passed on 19 April 2023
- Tribunal
- Delhi Income Tax Appellate Tribunal
- Outcome
- Penalty deleted; no under-reporting found
Sources
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