ITR filing mistake: ITAT deletes ₹17.41 lakh penalty after CA firm's affidavit proves clerical error

Mumbai ITAT deleted a ₹17.41 lakh penalty after accepting a CA firm's affidavit that an incorrect revised ITR was filed due to clerical error.

The Tribunal held that in the absence of evidence of deliberate misreporting, penalty under Section 270A could not be sustained.

The taxpayer originally filed an ITR for AY 2017-18 declaring a loss of ₹1.59 lakh, but a revised return showed a loss of over ₹1.06 crore.

The CA firm's proprietor admitted the mistake via sworn affidavit, and the Revenue did not disprove the explanation.

The ruling underscores that bona fide human errors backed by credible evidence may not attract penalty for misreporting.