Mint ·
Taxpayer left ₹38 lakh income out of ITR, paid ₹19.89 lakh tax later; why ITAT cancelled the ₹23.94 lakh penalty
A Mumbai ITAT ruling has deleted a ₹23.94 lakh penalty imposed on a taxpayer who had omitted ₹38.37 lakh of cash deposits from his original ITR but disclosed the income during scrutiny and paid the tax due.
A Mumbai ITAT ruling has provided relief to a taxpayer who had omitted ₹38.37 lakh of cash deposits from his original ITR but disclosed the amount during assessment proceedings and paid ₹19.89 lakh in tax.
The tribunal held that simply describing the omission as “misreporting” was not enough to justify the 200% penalty under section 270A of the Income-tax Act.
The order was pronounced on 10 September 2026 in Manoj Kumar Divakaran v. DCIT, Circle 42(2)(1), Mumbai, ITA No. 1297/Mum/2026 for AY 2022-23
