https://www.taxtmi.com/caselaws?id=795204 Penalty for misreporting of income under section 270A(9)(a) was not attracted where ESOP sale proceeds were initially reported as short-term capital gains but, during reassessment, the taxpayer treated the ESOP value as a salary perquisite and offered only the acquisition-cost-to-sale-price difference as capital gains. The note states that, because the shares were sold shortly after allotment and the differential tax was paid, the incorrect classification was accepted as a bona fide error by a salaried employee. The accepted income therefore did not amount to misreporting in the return, and the penalty was deleted. en-us Tue, 14 Jul 2026 00:00:00 +0530 Sat, 18 Jul 2026 08:27:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795204 Penalty for misreporting of income under section 270A(9)(a) was not attracted where ESOP sale proceeds were initially reported as short-term capital gains but, during reassessment, the taxpayer treated the ESOP value as a salary perquisite and offered only the acquisition-cost-to-sale-price difference as capital gains. The note states that, because the shares were sold shortly after allotment and the differential tax was paid, the incorrect classification was accepted as a bona fide error by a salaried employee. The accepted income therefore did not amount to misreporting in the return, and the penalty was deleted. Case-Laws Income Tax Tue, 14 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795204