Bombay HC says Finance Act 2026 Opens Penalty Waiver Route for Misreporting

In Farah Khurshed Titina, the assessee voluntarily corrected erroneous deductions, paid the additional tax and interest, but was subsequently penalised for misreporting. The Bombay High Court held that the Finance Act, 2026 enables waiver applications even after a penalty order and in misreporting cases, and that an earlier rejected application does not bar a fresh application under the amended provision. Since the statutory conditions were fulfilled, the Court directed the Assessing Officer to grant the waiver and consequential immunity.