New Delhi, Sept. 29 -- Not filing an income-tax return on time does not by itself mean that the entire income declared later can be treated as under-reported income for penalty purposes, a recent Income Tax Appellate Tribunal (ITAT) ruling has held.

The Mumbai bench of the ITAT deleted a Rs.3.95 lakh penalty under section 270A imposed on a ship captain who had failed to file his income-tax return within the prescribed deadline. The taxpayer subsequently filed his return after receiving a reassessment notice. However, the income disclosed by him was accepted by the tax department without any addition or variation.

The ruling inVivek Trivedi vs ACIT, pronounced on 23 September 2026, is relevant for taxpayers who may have missed the origin...