https://www.taxtmi.com/caselaws?id=65925 Penalty under section 158BFA(2) is discretionary because the provision uses "may" for levy, while "shall" governs only the quantum. The hearing requirement requires consideration of the assessee's facts and reasonable cause rather than mechanical imposition. The first proviso requires cumulative satisfaction of its conditions but does not prescribe a time limit for payment of tax based on the block return. Where lack of funds is bona fide and unrebutted, tax is paid before assessment, and deliberate default or non-cooperation is not established, penalty for non-payment or failure to furnish payment proof with the return is not sustainable. en-us Fri, 20 Jul 2007 00:00:00 +0530 Wed, 12 Jun 2013 14:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=65925 Penalty under section 158BFA(2) is discretionary because the provision uses "may" for levy, while "shall" governs only the quantum. The hearing requirement requires consideration of the assessee's facts and reasonable cause rather than mechanical imposition. The first proviso requires cumulative satisfaction of its conditions but does not prescribe a time limit for payment of tax based on the block return. Where lack of funds is bona fide and unrebutted, tax is paid before assessment, and deliberate default or non-cooperation is not established, penalty for non-payment or failure to furnish payment proof with the return is not sustainable. Case-Laws Income Tax Fri, 20 Jul 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=65925