https://www.taxtmi.com/highlights?id=97074 Penalty under the law arises as a discretionary sanction and authorities may impose it; however, where a State government organisation lacked malafide intent, faced staffing and procedural difficulties, and ultimately filed the required correction statement rectifying defects, the tribunal found that quasi criminal penalty was inappropriate and granted leniency by setting aside the penalty. The note emphasises that discretion (expressed by 'may') permits relief where procedural obstacles and absence of deliberate default are established and where administrative assistance was lacking, supporting mitigation rather than enforcement. en-us Sat, 21 Feb 2026 12:13:59 +0530 Sat, 21 Feb 2026 12:13:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=97074 Penalty under the law arises as a discretionary sanction and authorities may impose it; however, where a State government organisation lacked malafide intent, faced staffing and procedural difficulties, and ultimately filed the required correction statement rectifying defects, the tribunal found that quasi criminal penalty was inappropriate and granted leniency by setting aside the penalty. The note emphasises that discretion (expressed by 'may') permits relief where procedural obstacles and absence of deliberate default are established and where administrative assistance was lacking, supporting mitigation rather than enforcement. Highlights Income Tax Sat, 21 Feb 2026 12:13:59 +0530 https://www.taxtmi.com/highlights?id=97074