Man skipped ITR, declared Rs 12.9 lakh income after notice; ITAT cancels 200% penalty

The Income Tax Appellate Tribunal (ITAT) has overturned a 200 percent penalty imposed on an individual who failed to file an income tax return for the 2018-19 assessment year. After receiving a notice from the Income Tax Department, the taxpayer voluntarily disclosed an income of Rs 12.9 lakh. The initial penalty was levied by the Assessing Officer following the late disclosure.

The tribunal's decision to cancel the penalty highlights the legal complexities surrounding tax compliance and the application of punitive measures for non-filing. By ruling against the 200 percent penalty, the ITAT has established a precedent regarding the treatment of taxpayers who rectify their filing status after receiving official departmental notices.