New Delhi, July 29 -- If you file your ITR through a CA or tax consultant and they make a mistake, are you liable to pay the penalty? The ITAT says "no".

A taxpayer from Chennai hired a tax consultant who made errors while filing her ITR. The Income Tax Department asked her to pay a penalty of Rs.1.92 lakh.

However, the Income Tax Appellate Tribunal (ITAT), Chennai, later waived off the entire penalty, holding that a genuine mistake by a tax professional cannot automatically be treated as misreporting of income.

The case was highlighted by TaxBuddy founder Sujit Bangar in an X post, where he explained how the tribunal protected a taxpayer who had relied on her tax consultant while filing her return.

According to Bangar, Saroja, an 81-...