https://www.taxtmi.com/caselaws?id=17021 Penalty under section 17A(3) of the Kerala Agricultural Income-tax Act is not automatic on mere failure to pay admitted tax. The use of "may" and the requirement of a reasonable opportunity of being heard show that the power is quasi-judicial and must be exercised with sound discretion, after considering whether the default was deliberate, contumacious, dishonest, or otherwise explained by bona fide reasons such as financial stringency. The provision was treated as analogous to section 140A(3) of the Income-tax Act, where penalty is likewise not imposed mechanically. On that basis, the penalty orders were unsustainable and were set aside, with fresh consideration directed in accordance with law. en-us Wed, 28 Jan 1998 00:00:00 +0530 Mon, 14 Sep 2009 16:27:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17021 Penalty under section 17A(3) of the Kerala Agricultural Income-tax Act is not automatic on mere failure to pay admitted tax. The use of "may" and the requirement of a reasonable opportunity of being heard show that the power is quasi-judicial and must be exercised with sound discretion, after considering whether the default was deliberate, contumacious, dishonest, or otherwise explained by bona fide reasons such as financial stringency. The provision was treated as analogous to section 140A(3) of the Income-tax Act, where penalty is likewise not imposed mechanically. On that basis, the penalty orders were unsustainable and were set aside, with fresh consideration directed in accordance with law. Case-Laws Income Tax Wed, 28 Jan 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17021