Rs 30L salary, missed ITR after job switch; why ITAT cancelled Rs 3.74 lakh penalty
The Income Tax Appellate Tribunal (ITAT) cancelled a Rs 3.74 lakh penalty imposed on a taxpayer who failed to file his ITR on time due to a delay in receiving Form 16 after switching jobs. The tribunal ruled in favor of the taxpayer, noting that the relevant income and TDS details were already reflected in his Form 26AS.
Why it matters
This case provides clarity for taxpayers regarding the importance of Form 26AS and sets a precedent for relief when administrative delays prevent timely ITR filing.
Switching jobs comes with the need for increased vigilance on the income tax front. But what if your Form 16 is delayed and you are unable to file your tax return in time and the Income Tax Department imposes a penalty?That’s what happened with Pravesh Aggarwal, a resident of Indrapuram in Ghaziabad, Uttar Pradesh. Aggarwal changed jobs and earned a salary of Rs 30 lakh; however he failed to file his income tax return by the deadline. The reason was that he had not received his Form 16 from his previous employer in time.What appeared to be a filing lapse eventually turned into a tax penalty of Rs 3.74 lakh. The Income Tax Department took a strict view of the matter, maintaining that had the non-filing not been detected, Aggarwal might not have filed his ITR at all.
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