PENALTY UNDER SECTION 127

[Sadanand Bulbule]

Plz peruse the following:

Power to impose penalty in certain cases.

127. Where the proper officer is of the view that a person is liable to a penalty and the same is not covered under any proceedings under section 62 or section 63 or section 64 or section 73 or section 74 ¹[or section 74A] or section 129 or section 130, he may issue an order levying such penalty after giving a reasonable opportunity of being heard to such person.

Query:

What is amount of penalty leviable under Section 127? And what are the specific certain cases to invoke this section?

Plz elaborate.

 

AI Summary

Penalty power unclear: officers may levy penalties where other proceedings don't apply, but the penal quantum is unspecified.
Section 127 permits a proper officer to levy a penalty after hearing when the liability is not covered under specified other proceedings, but it does not specify the amount or ceiling of "such penalty," producing uncertainty. Practitioners observe officers sometimes levy penalties equal to tax, and commentators urge administrative clarification and legislative amendment to prescribe the quantum or ceiling to prevent inconsistent enforcement and abuse of discretion.