ITAT Deletes Penalty Due to Misplaced Reliance on Case Law & Foreign Tax Credit

Sanjay Kumar Vs ITO (ITAT Mumbai) In the case Sanjay Kumar vs ITO, the Income Tax Appellate Tribunal (ITAT) Mumbai considered an appeal against the imposition of penalty under Section 271(1)(c) of the Income Tax Act for Assessment Year 2016–17. The penalty of ₹1,89,887 was levied on account of alleged concealment of dividend income, which the assessee voluntarily disclosed during scrutiny by submitting a revised return. The assessee argued that the error was unintentional, arising from his status as a “Resident but not Ordinarily Resident” and the dividend not being credited to...