2001 (8) TMI 54

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....BU J.-The Assessing Officer has discretion under section 271(1)(c) of the Income-tax Act, 1961, whether or not to initiate penalty proceedings. The word used in the section is "may". The Supreme Court in the case of Hindustan Steel Ltd. v. State of Orissa [1972] 83 ITR 26, has laid down that the penalty will not be imposed merely because it is lawful to do so where a discretion is given to the aut....