https://www.taxtmi.com/caselaws?id=28345 The High Court held that the penalty under section 140A(3) of the Income Tax Act is not automatic but subject to the Income Tax Officer's discretion. The court emphasized the importance of giving the assessee a reasonable opportunity to be heard before imposing penalties. It rejected the argument that the penalty is mandatory in case of default and affirmed the Tribunal's decision in favor of the assessee based on the company's financial difficulties. The court ruled against the Revenue, highlighting the need to consider the assessee's explanation before levying penalties and awarded costs to the assessee. en-us Tue, 02 Nov 1982 00:00:00 +0530 Sat, 20 Feb 2010 18:07:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28345 The High Court held that the penalty under section 140A(3) of the Income Tax Act is not automatic but subject to the Income Tax Officer's discretion. The court emphasized the importance of giving the assessee a reasonable opportunity to be heard before imposing penalties. It rejected the argument that the penalty is mandatory in case of default and affirmed the Tribunal's decision in favor of the assessee based on the company's financial difficulties. The court ruled against the Revenue, highlighting the need to consider the assessee's explanation before levying penalties and awarded costs to the assessee. Case-Laws Income Tax Tue, 02 Nov 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28345