(5)The Principal Commissioner or Commissioner may, upon an application from the assessee, and after recording his reasons for doing so, reduce or waive the amount of penalty or penalties (whether they relate to one or more tax years) payable by the assessee or stay or compound any proceeding for the recovery of any such amount, if––(a)doing otherwise would cause genuine hardship to the assessee, having regard to the circumstances of the case; and(b)the assessee has cooperated in any inquiry relating to the assessment or any proceeding for the recovery of any amount due from him.
