Penalty for willful tax default deemed confiscatory; leave to appeal authorized and appeal should be pursued vigorously. Section 140A(3) was held unconstitutional by the Madras High Court as imposing a confiscatory penalty affecting Article 19(1)(f); the Department notes the decision is adverse to revenue, has authorised a leave petition for appeal, and advises that the provision is a quasi-criminal penalty for willful default rather than compensation, recommending that the appeal be pursued and expedited without immediate amendment to the statute.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Penalty for willful tax default deemed confiscatory; leave to appeal authorized and appeal should be pursued vigorously.
Section 140A(3) was held unconstitutional by the Madras High Court as imposing a confiscatory penalty affecting Article 19(1)(f); the Department notes the decision is adverse to revenue, has authorised a leave petition for appeal, and advises that the provision is a quasi-criminal penalty for willful default rather than compensation, recommending that the appeal be pursued and expedited without immediate amendment to the statute.
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