ITAT Chennai cancels Rs 10 lakh penalty for ESOP disclosure lapse in first year reporting

Published on 24 April 2026

The tribunal treated the omission as accidental

An employee was slapped with a Rs 10 lakh penalty for failing to disclose foreign ESOPs in his ITR. But the ITAT Chennai set aside the order, holding the omission was accidental and bona fide, especially since it was the first year the reporting requirement applied. The case highlights how intent and reporting context can swing tax penalties.

Employee faced Rs 10 lakh penalty over foreign ESOP non-disclosure
ITAT Chennai cancelled the penalty
Tribunal said the omission was accidental and bona fide
First year of reporting requirement factored heavily

#esop #foreign income #itat #tax penalty #income tax

Read the full story at The Economic Times

This summarization was done by Beige for a story published on The Economic Times

ITAT Chennai cancels Rs 10 lakh penalty for ESOP disclosure lapse in first year reporting

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