New Delhi, Oct. 18 -- Suppose you did not file an income tax return (ITR) in the first place, received an income tax notice, and faced a penalty of 200% - but still managed to get relief from the Income Tax Appellate Tribunal (ITAT). Sounds impossible?

This is exactly what happened in a case from Sikar, Rajasthan, where ITAT Jaipur quashed a Rs.3.99 lakh penalty imposed on a taxpayer, as reported by Economic Times.

The Income Tax Appellate Tribunal (ITAT), Jaipur, ruled in favour of a taxpayer on 23 September 2026, quashing a penalty of Rs.3.99 lakh imposed under Section 270A of the Income-tax Act, 1961. Here is what happened, why he won relief, and what taxpayers should know about the law.

According to the ET report, Sharma, a residen...