Delhi ITAT scraps Rs 3.74 lakh penalty for salaried taxpayer after Form 16 delay
The Delhi bench of the Income Tax Appellate Tribunal cancelled a Rs 3.74 lakh penalty imposed on Pravesh Aggarwal, who missed his tax return deadline due to a delayed Form 16 after changing jobs.
During the 2018-19 fiscal year, Pravesh Aggarwal switched employers and earned roughly Rs 30.22 lakh, but a delayed Form 16 prevented him from filing his income-tax return before the deadline. Relying on TDS details in Form 26AS, he believed his tax obligations were satisfied and missed the filing date. The Income Tax Department later reopened his case under Section 147, issued a notice, and after he filed a belated return, the assessing officer imposed a penalty of Rs 3.74 lakh, citing under-reporting and late filing.
Aggarwal contested the penalty before the Commissioner of Appeals, which was upheld, prompting him to approach the Delhi ITAT. The tribunal, noting his bona-fide belief and the absence of any undisclosed income, concluded that the penalty was unwarranted and directed its deletion, while upholding the rest of the assessment.
Why it matters
The ruling clarifies that taxpayers who rely on TDS information in Form 26AS may not face penalties for late filing if no income is concealed.
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