https://www.taxtmi.com/caselaws?id=65925 Penalty under section 158BFA(2) was treated as discretionary, because the statutory wording uses "may" for levy and "shall" only for quantification, leaving scope to consider facts and reasonable cause. The provision was also read as not imposing an express time limit for payment of tax with the block return. Where the assessee's explanation of lack of funds was unrebutted, the tax was paid before assessment, and no deliberate default or non-cooperation was established, the penalty could not be sustained. The article concludes that mechanical levy is inappropriate when bona fide cause is shown and the statutory conditions are not strictly triggered. 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) was treated as discretionary, because the statutory wording uses "may" for levy and "shall" only for quantification, leaving scope to consider facts and reasonable cause. The provision was also read as not imposing an express time limit for payment of tax with the block return. Where the assessee's explanation of lack of funds was unrebutted, the tax was paid before assessment, and no deliberate default or non-cooperation was established, the penalty could not be sustained. The article concludes that mechanical levy is inappropriate when bona fide cause is shown and the statutory conditions are not strictly triggered. Case-Laws Income Tax Fri, 20 Jul 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=65925