A tax notice or penalty can be a major financial headache for any taxpayer, especially when the amount is nearly Rs 24 lakh, and the Income Tax Department treats an omission in the income tax return (ITR) as “misreporting” of income. But does every mistake or omission in an income tax return automatically amount to misreporting? A recent ruling by the Income Tax Appellate Tribunal (ITAT), Mumbai, has provided important relief to a taxpayer facing a penalty of 200%.