Form 16 Trap: ITAT Deletes ₹51 Lakh Penalty on Wrong ESOP Exemption Claim

Renil E K Kumar C/o Fiscal Law Partners Vs DCIT (ITAT Bangalore) Form 16 Trap – ITAT Bangalore Deletes ₹51 Lakh Penalty, Says Every Wrong Claim Is Not Misreporting! The Bangalore ITAT deleted a penalty of ₹51.20 lakh levied u/s 270A on an employee of Wipro who had claimed exemption u/s 10(10CC) on ESOP-related perquisites based on the employer’s Form 16. The Tribunal noted that the employer itself had shown the amount as exempt and had not deducted TDS, leading the assessee to hold an honest and bona fide belief that the claim was valid. The Tribunal strongly criticised the AO for ...