https://www.taxtmi.com/caselaws?id=786897 Discretionary penalty under section 271FAA requires consideration of bona fide operational difficulties and absence of mala fides. Technical problems in generating and correcting Data Quality Reports, uploading correction statements, and staffing constraints may constitute reasonable cause where supported by records and followed by filing a defect-free Form 61A statement. Delay in filing an appeal may also be condoned where affidavits and correspondence substantiate these difficulties and have not been adequately considered. On these facts, the delay was condoned and the penalty for failure to furnish or correct the Statement of Financial Transactions was set aside. en-us Thu, 19 Feb 2026 00:00:00 +0530 Sat, 21 Feb 2026 09:29:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=786897 Discretionary penalty under section 271FAA requires consideration of bona fide operational difficulties and absence of mala fides. Technical problems in generating and correcting Data Quality Reports, uploading correction statements, and staffing constraints may constitute reasonable cause where supported by records and followed by filing a defect-free Form 61A statement. Delay in filing an appeal may also be condoned where affidavits and correspondence substantiate these difficulties and have not been adequately considered. On these facts, the delay was condoned and the penalty for failure to furnish or correct the Statement of Financial Transactions was set aside. Case-Laws Income Tax Thu, 19 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=786897