Indian man moves to US, fails to file ITR; Here’s why ITAT cancelled ₹8.29 lakh penalty
The case involved Abhishubham Bahadur Saxena, a resident of Malviya Nagar, who moved to the US in August 2018 after receiving an on-site job opportunity from a multinational company
- Sep 16, 2026,
- Updated Sep 16, 2026 1:05 AM IST
An Indian taxpayer who moved to the United States for work and failed to file his income tax return (ITR) in India has received major relief from the Income Tax Appellate Tribunal (ITAT), Jaipur. The tribunal cancelled a penalty of ₹8.29 lakh imposed on him for allegedly under-reporting and misreporting income.
The case involved Abhishubham Bahadur Saxena, a resident of Malviya Nagar, who moved to the US in August 2018 after receiving an on-site job opportunity from a multinational company, reported by Mint.
Taxpayer missed ITR deadline after relocation
Saxena reportedly earned around ₹26.06 lakh during the relevant financial year. However, amid his relocation and adjustment to a new country, he failed to file his income tax return within the prescribed deadline.
READ THIS: Tax filing 2026: Missed crypto income in ITR? Why investors could receive an Income Tax notice
On August 23, 2019, he voluntarily paid approximately ₹1.62 lakh in self-assessment tax, along with applicable interest and late fees. This payment was made before any reassessment proceedings were initiated against him, Mint reported.
The Income Tax Department later reopened his case after identifying his salary income. Following a notice under Section 148 of the Income-tax Act, Saxena filed his return declaring total income of ₹20.49 lakh.
₹8.29 lakh penalty imposed
The assessing officer accepted the return without making any additions to the income declared. However, penalty proceedings were subsequently initiated under Section 270A, treating the income disclosed through the reassessment return as under-reported income.
The case was further classified as “misreporting” under Section 270A(9)(a), which carries a significantly higher penalty. The penalty imposed on Saxena amounted to ₹8,29,034. The Commissioner of Income Tax (Appeals) also upheld the penalty, Mint reported.
‘I inadvertently missed filing the return’
Saxena argued that the omission was not deliberate and that he had already paid the tax and applicable charges voluntarily.
“Due to my relocation and the demanding schedule of settling into a new country, coupled with my lack of familiarity with the procedural requirements for filing an income tax return in India at that time, I inadvertently missed filing the return by the due date,” he said, according to Mint.
He also submitted that he had limited understanding of the provisions governing belated returns under Section 139(4).
ALSO READ: ITR-3 vs ITR-4: Which income tax return form should freelancers, traders and business owners use?
ITAT Jaipur grants full relief
On August 17, 2026, ITAT Jaipur ruled in Saxena’s favour and ordered deletion of the entire ₹8.29 lakh penalty.
The tribunal held that he was entitled to protection under Section 270A(6), providing relief from the penalty. It also condoned a 49-day delay in filing his appeal, accepting that the delay resulted from a jurisdictional mismatch between Kanpur and Jaipur on the income-tax portal.
The ruling highlights the distinction between an inadvertent compliance lapse and deliberate income misreporting, while underscoring the importance of timely ITR filing for taxpayers relocating overseas.
An Indian taxpayer who moved to the United States for work and failed to file his income tax return (ITR) in India has received major relief from the Income Tax Appellate Tribunal (ITAT), Jaipur. The tribunal cancelled a penalty of ₹8.29 lakh imposed on him for allegedly under-reporting and misreporting income.
The case involved Abhishubham Bahadur Saxena, a resident of Malviya Nagar, who moved to the US in August 2018 after receiving an on-site job opportunity from a multinational company, reported by Mint.
Taxpayer missed ITR deadline after relocation
Saxena reportedly earned around ₹26.06 lakh during the relevant financial year. However, amid his relocation and adjustment to a new country, he failed to file his income tax return within the prescribed deadline.
READ THIS: Tax filing 2026: Missed crypto income in ITR? Why investors could receive an Income Tax notice
On August 23, 2019, he voluntarily paid approximately ₹1.62 lakh in self-assessment tax, along with applicable interest and late fees. This payment was made before any reassessment proceedings were initiated against him, Mint reported.
The Income Tax Department later reopened his case after identifying his salary income. Following a notice under Section 148 of the Income-tax Act, Saxena filed his return declaring total income of ₹20.49 lakh.
₹8.29 lakh penalty imposed
The assessing officer accepted the return without making any additions to the income declared. However, penalty proceedings were subsequently initiated under Section 270A, treating the income disclosed through the reassessment return as under-reported income.
The case was further classified as “misreporting” under Section 270A(9)(a), which carries a significantly higher penalty. The penalty imposed on Saxena amounted to ₹8,29,034. The Commissioner of Income Tax (Appeals) also upheld the penalty, Mint reported.
‘I inadvertently missed filing the return’
Saxena argued that the omission was not deliberate and that he had already paid the tax and applicable charges voluntarily.
“Due to my relocation and the demanding schedule of settling into a new country, coupled with my lack of familiarity with the procedural requirements for filing an income tax return in India at that time, I inadvertently missed filing the return by the due date,” he said, according to Mint.
He also submitted that he had limited understanding of the provisions governing belated returns under Section 139(4).
ALSO READ: ITR-3 vs ITR-4: Which income tax return form should freelancers, traders and business owners use?
ITAT Jaipur grants full relief
On August 17, 2026, ITAT Jaipur ruled in Saxena’s favour and ordered deletion of the entire ₹8.29 lakh penalty.
The tribunal held that he was entitled to protection under Section 270A(6), providing relief from the penalty. It also condoned a 49-day delay in filing his appeal, accepting that the delay resulted from a jurisdictional mismatch between Kanpur and Jaipur on the income-tax portal.
The ruling highlights the distinction between an inadvertent compliance lapse and deliberate income misreporting, while underscoring the importance of timely ITR filing for taxpayers relocating overseas.