ITR filing: ITAT deletes ₹10 lakh Black Money Act penalty over foreign ESOP disclosure

Chennai ITAT deleted ₹10 lakh penalty under the Black Money Act for non-disclosure of foreign ESOPs in Schedule FA.

ITAT held that a genuine failure to disclose foreign ESOPs does not automatically warrant penalty under the Black Money Act.

Taxpayer Kishore Kumar Rajagopal had already paid tax on ESOPs via TDS and disclosed capital gains from their sale later.

The omission was for AY 2016-17, the first year Schedule FA reporting was introduced, and ESOPs were held via a fiduciary arrangement in Jersey.

Tribunal found no evidence of concealment or tax evasion, and no revenue loss to the exchequer.