https://www.taxtmi.com/caselaws?id=36459 The High Court held that the Tribunal erred in canceling the penalty under s. 140A(3) of the Income-tax Act, 1961. The Court disagreed with the Tribunal's decision to declare s. 140A(3) unconstitutional, as it found the provision valid and serving the purpose of ensuring tax compliance. The Court emphasized that the authorities cannot question the validity of provisions unless declared unconstitutional by a High Court. The penalty provision allowed for discretion by the Income-tax Officer and was not confiscatory, leading to the Court's decision in favor of upholding the penalty. en-us Wed, 02 Jul 1980 00:00:00 +0530 Mon, 22 Mar 2010 14:59:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36459 The High Court held that the Tribunal erred in canceling the penalty under s. 140A(3) of the Income-tax Act, 1961. The Court disagreed with the Tribunal's decision to declare s. 140A(3) unconstitutional, as it found the provision valid and serving the purpose of ensuring tax compliance. The Court emphasized that the authorities cannot question the validity of provisions unless declared unconstitutional by a High Court. The penalty provision allowed for discretion by the Income-tax Officer and was not confiscatory, leading to the Court's decision in favor of upholding the penalty. Case-Laws Income Tax Wed, 02 Jul 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36459