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2010 (10) TMI 856 - HC - Income TaxPenalty u/s 140 - failure to deposit the entire amount of advance tax - as per assessee default in making payment was on account of financial stringency due to destruction of equipments and material during riots - Held that:- Tribunal in the assessee's case relating to earlier two assessment years thought it appropriate to give benefit on account of difficulties faced by the assessee because of riots and fire on 1.11.1984. As certain breathing period should be reasonably allowed to the assessee on account of unprecedented and unfortunate incidents on account of which it suffered extensive damage and huge losses. Therefore, it is appropriate to allow relief from 25.2.85 to 31.10.1985, It cannot be disputed that under Section 140-A(3) of the Act, levy of penalty is not mandatory. There is no minimum penalty provided. On the facts and circumstances, if the Tribunal having regard to the hardship to the assessee, has waived penalty for a limited period, the view so taken cannot be held to be erroneous - in favour of the assessee.
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