New Delhi, July 27 -- A Mumbai taxpayer has secured relief from a Rs.17.41 lakh penalty after the Income Tax Appellate Tribunal (ITAT) held that an inadvertent filing mistake by a chartered accountant's office, backed by a sworn affidavit, did not amount to misreporting of income.

The dispute arose for Assessment Year (AY) 2017-18 after the taxpayer filed an original income tax return declaring a loss of Rs.1.59 lakh. A revised return filed later reflected a loss of more than Rs.1.06 crore, prompting the Income Tax Department to initiate penalty proceedings under Section 270A of the Income-tax Act on the ground of under-reporting and misreporting of income.

The taxpayer challenged the penalty, contending that the revised return containi...