A Delhi Income Tax Appellate Tribunal has overturned a ₹3.74 lakh penalty for late filing, recognising that failing to file on time does not amount to under-reporting when the income was eventually declared and correctly assessed.
A Delhi tribunal has thrown out a ₹3.74 lakh penalty imposed on a salaried taxpayer after finding that his failure to file an income tax return on time did not amount to under-reporting. According to Business Today and LiveMint, the employee had changed jobs during the year and said he was waiting for Form 16 from both employers. He believed his obligations were met because tax had already been deducted at source and the amounts were visible in Form 26AS.
The case centred on whether the taxpayer had hidden income or merely missed the filing deadline. The Delhi Income Tax Appellate Tribunal said the return eventually filed in response to a reopening notice declared ₹30,22,900 in income, and the department accepted that figure without making any additions. That mattered because the penalty had been imposed under Section 270A, which applies to under-reporting of income.
The tribunal also accepted that the taxpayer’s explanation was made in good faith. LiveMint reported that his salary and TDS details were already reflected in Form 26AS, which was available to the tax department. On that basis, the bench concluded there was no suppression of facts and no disclosure of a lower income than the amount actually assessed.
The ruling is a reminder, though, that TDS alone does not remove the duty to file an income tax return when one is otherwise required. A separate guide cited by Patel Accounting notes that salaried taxpayers who miss the deadline can still face a late fee under Section 234F and monthly interest under Section 234A. Tax experts also advise using Form 26AS, salary slips, bank statements and the Annual Information Statement when Form 16 is delayed, rather than assuming the filing obligation has disappeared.
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