https://www.taxtmi.com/caselaws?id=26980 A statutory penalty provision is not unconstitutional merely because it confers discretion, where the scheme limits its operation to final assessment, a prescribed tax shortfall, and statutory caps that guide the authority's exercise of power; the provision was therefore upheld against the article 14 challenge. Penalty under the provision is nevertheless discretionary, not automatic, and the authority must issue notice, consider the explanation, and decide each case on its facts. An order treating penalty as a mechanical consequence of default, without judicial assessment of the relevant circumstances, is legally unsustainable and was quashed, with the matter remitted for fresh consideration. en-us Tue, 10 Sep 1985 00:00:00 +0530 Tue, 09 Feb 2010 18:25:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26980 A statutory penalty provision is not unconstitutional merely because it confers discretion, where the scheme limits its operation to final assessment, a prescribed tax shortfall, and statutory caps that guide the authority's exercise of power; the provision was therefore upheld against the article 14 challenge. Penalty under the provision is nevertheless discretionary, not automatic, and the authority must issue notice, consider the explanation, and decide each case on its facts. An order treating penalty as a mechanical consequence of default, without judicial assessment of the relevant circumstances, is legally unsustainable and was quashed, with the matter remitted for fresh consideration. Case-Laws Income Tax Tue, 10 Sep 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26980