https://www.taxtmi.com/caselaws?id=12120 The High Court held that penalties under section 272A(2)(c) of the Income-tax Act should not exceed the amount of tax deductible or collectible, rejecting the Tribunal's cancellation of the penalty based on the proviso. Emphasizing that penalties should not be imposed routinely, the court stated that penalties must be justified by deliberate defiance of the law or contumacious conduct, not technical breaches. The court clarified that the terms 'deductible' or 'collectible' determine penalty quantum, not restrict penalties to outstanding tax cases. The court underscored the need for judicious penalty imposition based on individual circumstances, with the proviso setting an outer limit for penalties. en-us Sat, 11 May 2002 00:00:00 +0530 Wed, 17 Feb 2010 17:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12120 The High Court held that penalties under section 272A(2)(c) of the Income-tax Act should not exceed the amount of tax deductible or collectible, rejecting the Tribunal's cancellation of the penalty based on the proviso. Emphasizing that penalties should not be imposed routinely, the court stated that penalties must be justified by deliberate defiance of the law or contumacious conduct, not technical breaches. The court clarified that the terms 'deductible' or 'collectible' determine penalty quantum, not restrict penalties to outstanding tax cases. The court underscored the need for judicious penalty imposition based on individual circumstances, with the proviso setting an outer limit for penalties. Case-Laws Income Tax Sat, 11 May 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12120