https://www.taxtmi.com/caselaws?id=795204 Penalty for under-reporting due to misreporting was not attracted where ESOP sale proceeds were initially reported as short-term capital gains but were corrected during reassessment. The employee subsequently offered the ESOP value as a salary perquisite, treated only the excess of sale price over acquisition cost as capital gains, and paid the differential tax. Given the prompt correction and the short interval between allotment and sale, the incorrect classification was treated as a bona fide mistake rather than misreporting in the return. Consequently, penalty under Section 270A(9)(a) 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 under-reporting due to misreporting was not attracted where ESOP sale proceeds were initially reported as short-term capital gains but were corrected during reassessment. The employee subsequently offered the ESOP value as a salary perquisite, treated only the excess of sale price over acquisition cost as capital gains, and paid the differential tax. Given the prompt correction and the short interval between allotment and sale, the incorrect classification was treated as a bona fide mistake rather than misreporting in the return. Consequently, penalty under Section 270A(9)(a) was deleted. Case-Laws Income Tax Tue, 14 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795204