ITAT Waives Rs 3.74 Lakh Tax Penalty on Salaried Man Who Missed ITR After Job Switch

A salaried individual named Aggarwal, earning Rs 30 lakh annually, failed to file his Income Tax Return following a job change, triggering a penalty of Rs 3.74 lakh from the Income Tax Department. Tax authorities argued that the non-filing was only caught during scrutiny and that Aggarwal might never have voluntarily reported his salary and interest income otherwise. The matter was escalated and eventually reached the Income Tax Appellate Tribunal (ITAT). The ITAT ruled in Aggarwal's favour, cancelling the penalty and providing relief to the taxpayer. The case highlights the importance of filing ITRs promptly after employment changes, even when tax may have been deducted at source.