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Hindustan Steel Ltd vs State Of Orissa on 4 August, 1969

(viii) Hon'ble Apex Court in Hindustan Steels Ltd. Vs. State of Orissa, 83 ITR 26 (SC). has held that Penalty shall not be imposed merely because it is lawful to do so. Even if a minimum penalty is prescribed the authority shall exercise the discretion judicially and on consideration of all the relevant circumstances; the penalty should not be imposed when there is technical or venial breach of the provisions.
Supreme Court of India Cites 11 - Cited by 1607 - J C Shah - Full Document

Dalsukhrai Jaidayal vs Commissioner Of Income-Tax And C.P. And ... on 4 November, 1949

It is thus emphatically pleaded that assessee has demonstrated that its assessment had attained finality due to non service of notice u/s 143(2) within limitation period. Admittedly neither any incriminating material was found as a result of search nor it is relied on by ld. AO while disallowing the loss; consequently the 153A assessment and summary disallowance of loss is void ab initio. Hence the impugned 153A assessment and addition/ disallowance of loss is not sustainable in law. On this plea also the impugned penalty is liable to be deleted. 2.4 Ld. Counsel contends that assessee has shown GP rate of 62.85%, there is no finding of ld AO in assessment order that the GP declared by the assessee is at lower side or the expenses are inflated. Return of income is filed on the basis of books of account audited by Chartered Accountants under Companies Act and Income Tax Act i.e. by independent statutory agencies after due examination have given a statutory certificate that audited record give a true and fair view of the loss of the company. The Audited annual accounts should be accepted as evidence in view of the ratio laid down by Hon'ble Delhi High Court in the case of Addl.
Allahabad High Court Cites 5 - Cited by 7 - Full Document
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