Latest updates for Income Tax Act Penalty Case Law

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Recent items include:

  • Form 16 delay led to ITR non-filing and ₹3.74 lakh penalty: How a salaried employee won his case
  • Rs 30L salary, missed ITR after job switch; why ITAT cancelled Rs 3.74 lakh penalty
  • No Tax, No Penalty: ITAT Mumbai Draws the Line on Section 270A Penalties for Charitable Trusts

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businesstoday.in /2 weeks ago

Form 16 delay led to ITR non-filing and ₹3.74 lakh penalty: How a salaried employee won his case

A salaried employee’s failure to file his ITR after switching jobs led to a ₹3.74 lakh penalty, even though the TDS deducted by his employers was reflected in Form 26AS. ITAT Delhi...

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timesofindia.indiatimes.com /1 week ago

Rs 30L salary, missed ITR after job switch; why ITAT cancelled Rs 3.74 lakh penalty

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-fi...

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thetaxtalk.com /1 month ago

No Tax, No Penalty: ITAT Mumbai Draws the Line on Section 270A Penalties for Charitable Trusts

No Tax, No Penalty: ITAT Mumbai Draws the Line on Section 270A Penalties for Charitable Trusts   The introduction of Section 270A of the Income-tax Act marked a significant shift i...

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blog.saginfotech.com /2 weeks ago

Delhi ITAT Deletes Tax Penalty on Salaried Person for Failing to File ITR Even With ₹30 Lakh Income

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) removed the penalty of Rs. 3,74,072 levied on a salaried employee who had not submitted his original ITR despite earning...

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blog.saginfotech.com /2 weeks ago

Delhi HC Cancels Tax Penalty U/S 271(1)(c) Due to Defective Notice

The Delhi High Court has mentioned that a penalty levied under section 271(1)(c) of the Income Tax Act, 1961, cannot be sustained if the notice issued to the taxpayer did not menti...

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thetaxtalk.com /1 month ago

Wrong Political Donation Claim Doesn’t Automatically Mean 200% Penalty: Ahmedabad ITAT Cancels Penalty Under Section 270...

Wrong Political Donation Claim Doesn’t Automatically Mean 200% Penalty: Ahmedabad ITAT Cancels Penalty Under Section 270A Keywords: Section 270A penalty, bogus political donation,...

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thetaxtalk.com /3 weeks ago

Can Penalty Under Section 271(1)(c) Be Levied on Estimated Bogus Purchase Additions? ITAT Says No

Can Penalty Under Section 271(1)(c) Be Levied on Estimated Bogus Purchase Additions? ITAT Says No   Estimated Additions Cannot Automatically Lead to Penalty for Concealment or Furn...

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blog.saginfotech.com /2 days ago

Delhi HC Waives Service Tax Penalty, Holds Bona Fide Belief in Non-Taxability a Reasonable Cause u/s 80

The Delhi High Court has mentioned that a bona fide and reasonable presumption of non-taxability constitutes a reasonable cause u/s 80 of the Finance Act, 1994, especially when the...

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thetaxtalk.com /2 weeks ago

Failure to Initiate Section 270A Penalty Cannot Alone Justify Section 263 Revision: ITAT Ahmedabad

Failure to Initiate Section 270A Penalty Cannot Alone Justify Section 263 Revision: ITAT Ahmedabad   PCIT cannot revise an assessment merely because AO did not initiate penalty pro...

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currentfederaltaxdevelopments.com /2 weeks ago

The Full Payment Requirement and the Presumption of Correctness: Jurisdictional Lessons from Pellegrino v. United States

Pellegrino v. United States, No. 1:26-cv-00403, 2026 WL (Fed. Cl. Aug. 20, 2026) In Pellegrino v. United States, No. 1:26-cv-00403 (Fed. Cl. Aug. 20, 2026), Judge Philip S....

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thetaxtalk.com /1 month ago

Refund Cannot Be Denied for Mere Technical Lapse: ITAT Invokes Article 265 to Protect Taxpayer’s Rights

Refund Cannot Be Denied for Mere Technical Lapse: ITAT Invokes Article 265 to Protect Taxpayer’s Rights     Once Delay in E-Verification Is Condoned, Revenue Cannot Retain Tax That...

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currentfederaltaxdevelopments.com /1 month ago

Federal Courts Lack APA Jurisdiction Over Foreign Gift Penalty Disputes: The Adequate Alternative Remedy Barrier

Zhang v. Internal Revenue Service, No. 26-cv-00525-VKD (N.D. Cal. July 30, 2026) The compliance burden for U.S. taxpayers receiving foreign gifts has intensified over the la...

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amlegals.com /1 week ago

Misclassified Tax Cannot Become A Lawful Levy: Limitation Cannot Validate An Unauthorised Tax Collection

Introduction The question of whether the Government can retain an amount collected as tax despite the absence of a lawful statutory liability has repeatedly arisen under the erstwh...

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currentfederaltaxdevelopments.com /1 month ago

Double Books and Disguised Payees: Corporate Personal Expenses and the Civil Fraud Penalty in Prezioso v. Commissioner

Walter D. Prezioso & Kimberly J. Prezioso v. Commissioner, T.C. Memo. 2026-63, July 28, 2026 The taxpayer, Walter D. Prezioso, joined GSP Precision, Inc. (GSP)—an aerosp...

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thetaxtalk.com /1 month ago

Procedural Lapse Cannot Defeat Substantive Tax Benefit: Telangana High Court Restores Section 115BAA Benefit Despite Del...

Procedural Lapse Cannot Defeat Substantive Tax Benefit: Telangana High Court Restores Section 115BAA Benefit Despite Delay in Filing Form 10-IC   A Landmark Judgment on “Genuine Ha...

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thetaxtalk.com /3 weeks ago

129 Days Late, But Not Too Late: Nagpur ITAT directed CIT (A) to decide the case on merits after providing an opportunit...

129 Days Late, But Not Too Late: Nagpur ITAT directed CIT (A) to decide the case on merits after providing an opportunity of hearing to the Assessee     When justice prevailed over...

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currentfederaltaxdevelopments.com /1 week ago

Tax Administration, Sham Partnerships, and Voluntary Compliance: Understanding the Eleventh Circuit’s Affirmation of the...

Filipowski v. Commissioner, No. 25-11382 (11th Cir. 2025), September 2, 2026 For tax professionals representing clients with significant tax delinquencies, the Offer-in-Comp...

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currentfederaltaxdevelopments.com /1 week ago

Professional Sophistication and the Civil Fraud Penalty: How an IRS Auditor’s Own Expertise Sealed His Fate in Tax Court

Peter J. Janangelo, Jr. and Mary Ann Janangelo v. Commissioner of Internal Revenue, T.C. Summary Opinion 2026-8 (Tax Ct. Aug. 27, 2026) Tax professionals are often held to a h...

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thetaxtalk.com /3 weeks ago

Rejected of application done under Section 119(2)(b) Application: Is It Appealable?

Rejected of application done under Section 119(2)(b) Application: Is It Appealable?   What is the remedy when the Income Tax Department refuses to condone the delay? Tax laws presc...

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blog.saginfotech.com /3 weeks ago

Delhi HC Defers Decision on GST Penalty for Non-Taxable Persons Under Section 122(1) Pending SC Proceedings

In a significant legal development regarding GST penalties, the Delhi High Court has recently declined to pass a ruling on whether penalties under Section 122(1) of the Central Goo...

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currentfederaltaxdevelopments.com /4 days ago

FBAR Willfulness, Recklessness, and the Excessive Fines Defense: Key Insights for Tax Professionals from United States v...

United States v. Rund, No. 24-1958, ___ F.4th ___ (4th Cir. Sep. 4, 2026), affirming 743 F. Supp. 3d 779 (E.D. Va. 2024) As tax professionals representing clients with interna...

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thetaxtalk.com /3 weeks ago

Section 153C Cannot Be Invoked After 1 April 2021 for an “Other Person” Merely Because the Search Was Conducted Earlier:...

Section 153C Cannot Be Invoked After 1 April 2021 for an “Other Person” Merely Because the Search Was Conducted Earlier: ITAT Bangalore   Landmark Ruling Clarifies That the Date of...

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thetaxtalk.com /1 month ago

Suspicion Alone Cannot Justify Income Tax Additions: Supreme Court Upholds Deletion of ₹16.61 Crore Alleged Unaccounted...

Suspicion Alone Cannot Justify Income Tax Additions: Supreme Court Upholds Deletion of ₹16.61 Crore Alleged Unaccounted Sales Tax Assessments Must Be Based on Evidence, Not Mathema...

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thetaxtalk.com /1 day ago

₹23.33 Crore Addition Deleted: ITAT Says Wrong ITR Column Is Not Undisclosed Income

₹23.33 Crore Addition Deleted: ITAT Says Wrong ITR Column Is Not Undisclosed Income     A clerical mistake in the ITR cannot become taxable income when the amount was already discl...

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amlegals.com

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blog.saginfotech.com

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thetaxtalk.com

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timesofindia.indiatimes.com

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businesstoday.in

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currentfederaltaxdevelopments.com

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