When someone moves abroad for a new job, filing an Indian income tax return is rarely at the top of the to-do list. New city, new time zone, a hundred things to settle. By the time the ITR deadline comes to mind, it has often already passed.

What this ruling confirms is that missing a deadline because of a genuine relocation, followed by voluntary tax payment before any notice arrives, does not automatically mean a penalty will stick. The Income Tax Appellate Tribunal, ITAT Jaipur, recently deleted a Section 270A penalty of ₹8.29 lakh on exactly this basis, in the case of Abhishubham Bahadur Saxena vs ITO (ITA No. 668/JPR/2026).

This is directly relevant for NRIs in the USA, UK, UAE, Canada, Australia, Singapore, and elsewhere who moved abroad mid-year and missed a filing deadline, or who have already received an income tax notice in India.

What Happened in This Case?

The taxpayer moved to the United States in August 2018 for a job with a multinational company. In the middle of settling into a new country and a demanding role, he missed the 31 August 2018 deadline to file his return for AY 2018-19. During that year, he had earned salary income of around ₹26.05 lakh.

By the time he caught the oversight, in August 2019, the window to file a belated return under Section 139(4) had already closed. Rather than do nothing, he voluntarily deposited self-assessment tax of roughly ₹1.62 lakh, along with interest and the late fee under Section 234F. He did this well before the Income Tax Department issued any notice.

The Department reopened his case under a Section 148 reassessment notice in March 2022. He filed a return declaring total income of ₹20.49 lakh, which the Department accepted without any changes. Despite this, the Assessing Officer initiated penalty proceedings under Section 270A(9), treating the income as both underreported and misreported, and levied a penalty of ₹8.29 lakh. The Commissioner (Appeals) upheld it. The case went to ITAT Jaipur.

Can Missing an ITR Deadline Lead to a Penalty Under Section 270A?

This is the core question, and the answer depends on a few specific provisions.

Section 270A(2)(b) treats income as "underreported" when a return is filed for the first time only in response to a Section 148 reassessment notice, and the assessed income exceeds the basic exemption limit. Section 270A(9)(a) goes further: it treats that underreporting as "misreporting" if there is misrepresentation or suppression of facts, which attracts a much steeper penalty.

On a plain reading, the Department's position was not unreasonable. No original return was filed. Income was disclosed only after a notice. Assessed income exceeded the threshold. All of that, on the face of it, fits the definitions.

But the law includes an important exception that changes the picture.

How ITAT Jaipur Applied the Bona Fide Explanation Exception?

The Tribunal looked at Section 270A(6)(a), which says income does not qualify as underreported at all if the taxpayer offers a bona fide explanation and discloses all material facts to back it up. And if the income was never underreported in the first place, the misreporting charge cannot survive either.

The ITAT Jaipur bench found the taxpayer's explanation genuinely bona fide, based on the following:

• He had filed his returns on time in every preceding year, showing a clean NRI tax compliance history.
• He was unfamiliar with the specific rules and timelines for belated filing while adjusting to life in a new country.
• He voluntarily paid all tax due, including interest and the late fee, in August 2019, nearly three years before the reassessment notice arrived in March 2022.
• The Department's own reassessment confirmed his income with no variation, meaning there was no suppression of facts.

On this basis, the Tribunal held that the explanation was bona fide and properly substantiated, and that the Assessing Officer and CIT(A) were wrong to disallow it. Since the income never qualified as underreported under Section 270A(6), the entire ₹8.29 lakh Section 270A penalty was directed to be deleted.

The Tribunal also condoned a 49-day delay in filing the appeal itself. The delay happened because the taxpayer's PAN was showing an outdated Kanpur jurisdiction on the portal instead of Jaipur. The ITAT accepted that this was a procedural issue, not any laxity on the taxpayer's part.

Why This Ruling Matters for NRI ITR Filing?

This case reflects a fact pattern that comes up regularly for first-time NRIs and recently relocated professionals. A few lessons stand out clearly.

Voluntary Compliance Before a Notice Is the Strongest Protection

The single most important fact here was that the taxpayer paid his taxes before the Department issued any notice. Once a notice arrives first and compliance follows only afterward, the bona fide argument becomes much harder to sustain.

A Clean Prior Filing History Carries Real Weight

ITAT Jaipur specifically noted that the taxpayer had always filed on time in earlier years. That track record supports the argument that the lapse was a one-time, genuine oversight, not a pattern of avoidance.

Section 270A(6) Is a Real Shield, But It Requires Documentation

Section 270A(6) is not automatic. The taxpayer has to actively demonstrate bona fides with clear evidence: a timeline of events, proof of voluntary payment, and records showing the reason for the delay. Without that paper trail, the protection is hard to claim.

Section 148 Reassessment Notices for NRIs Are Increasing

As data-matching between banks, employers, and the Income Tax Department improves, more NRIs are receiving Section 148 reassessment notices years after relocating. Often these relate to the very year they were transitioning between countries.

What NRIs Should Do If They Missed a Filing Deadline?

Whether you are yet to file or have already received a notice, the steps to take are similar.

1. Pay any outstanding self-assessment tax, interest, and late fee voluntarily, without waiting for a notice to arrive.
2. Keep clear records of the payment date, along with a written timeline explaining when you relocated and why the deadline was missed.
3. Hold onto prior years' ITR filings to show a genuine NRI tax compliance history.
4. If a Section 148 reassessment notice has been received, respond within the deadline and file a return with accurate, complete income disclosure.
5. If a Section 270A penalty notice follows, assess whether Section 270A(6) or immunity under Section 270AA applies, and gather all supporting documentation before responding.

Common Mistakes NRIs Make After Moving Abroad

Getting these details wrong can make an already stressful situation considerably worse.

Assuming the ITR deadline no longer applies after you leave India. Indian-source income, and worldwide income earned while you were still a resident during that financial year, must be reported regardless of where you are living when the deadline falls.

Waiting for a notice before doing anything. As this ruling makes clear, voluntary compliance before a notice is the factor that makes a bona fide explanation credible. Waiting for the Department to act first weakens that argument considerably.

Not keeping evidence of the relocation itself. Boarding passes, offer letters, employment start dates, and payment challans all matter when a bona fide explanation has to be substantiated years down the line.

Missing the belated return window under Section 139(4). The window to file a belated return is limited and closes at the end of the relevant assessment year. Once it closes, that option is gone.

Treating a Section 148 reassessment notice as routine. These notices carry real consequences, including Section 270A penalty exposure, and deserve a carefully drafted response.

How Dinesh Aarjav & Associates Helps NRIs?

Our team regularly helps NRIs, OCIs, and recently relocated professionals with NRI ITR filing and tax notice matters in India.

With 25+ years of experience focused on NRI and cross-border taxation, we help clients build the documented, bona fide compliance record that tribunals like ITAT Jaipur look for in cases like this one.