New Delhi, Sept. 16 -- A Mumbai ITAT ruling has provided relief to a taxpayer who had omitted Rs.38.37 lakh of cash deposits from his original ITR but disclosed the amount during assessment proceedings and paid Rs.19.89 lakh in tax.

The tribunal held that simply describing the omission as "misreporting" was not enough to justify the 200% penalty under section 270A of the Income-tax Act.

The order was pronounced on 10 September 2026 in Manoj Kumar Divakaran v. DCIT, Circle 42(2)(1), Mumbai, ITA No. 1297/Mum/2026 for AY 2022-23

The case concerns Manoj Kumar Divakaran and assessment year 2022-23. He had filed his original income-tax return on 5 July 2022, declaring income of Rs.47.43 lakh.

His return was subsequently selected for scrutin...