New Delhi, Aug. 22 -- Not filing income tax return (ITR) can prove costly, but a recent tax case shows that taxpayers may have a valid defence only when the delay is due to genuine circumstances. Pravesh Aggarwal, a salaried employee from Indirapuram, Ghaziabad, got a salary of Rs.30 lakh after switching jobs but could not file his ITR on time because he did not receive Form 16 from his past employer.

The income tax department imposed a Rs.3.74 lakh penalty, arguing that Aggarwal may not have reported his salary and interest income had the department not detected the lapse, according to a report by The Economic Times.

However, the taxpayer challenged the penalty and ultimately won the case before ITAT Delhi, which held that a genuine sa...