When Mr Pravesh Aggarwal from Indrapuram, Ghaziabad, Uttar Pradesh switched jobs and got Rs 30 lakh salary he did not file an income tax return by the due date as he could not get the Form 16 in time from his past employer. However, this mistake costed him Rs 3.74 lakh penalty as the Income Tax Department looked strictly at this and opined that if they had not caught this Aggarwal would not have filed the ITR and thus his salary and interest income would not have got reported.
Ultimately, after a long fight, Aggarwal won the case in ITAT Delhi. Anubhav Sharma, Judicial Member and Manish Agarwal, Accountant Member of ITAT Delhi, said that a genuine salaried employee should not be heavily penalised for not filing ITR, especially if his employer has deducted TDS from salary and no under-reporting of income has taken place.
