No Penalty if Assessee Discloses Genuine LTCG Amount: ITAT Deletes Income Tax Penalty finding Reasonable Cause for S.269SS Non-Compliance

The ITAT removed an income tax penalty for the disclosure of genuine Long-Term Capital Gains (LTCG), finding that the taxpayer had provided sufficient reason for non-compliance with section 269SS of the Income Tax Act. The Tribunal acknowledged the taxpayer’s efforts to disclose the correct amount but imposed no penalty due to reasonable cause for the failure. This decision reinforces the principle that penalties should not be imposed in cases where taxpayers act in good faith and take corrective action.