Waiver of time limit for penalty cancellation allows tax authorities to annul penalties tied to cancelled assessments, subject to exclusions. Authorisation allows income-tax authorities to cancel or admit applications for cancellation of penalty orders based on assessments subsequently cancelled or annulled, permitting ITOs/AACs/IACs/Additional Commissioners/Commissioners to act suo motu or on applications and to waive the statutory time limit to prevent hardship. The order excludes penalties finally confirmed by superior judicial bodies, penalties linked to assessments set aside for de novo framing, and penalties where appeals remain pending; competence to act aligns with the final appellate or revisional position.