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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