Penalty not to be imposed in certain cases
117. (1) Notwithstanding anything contained in section 114 or section 115 or section 116, no penalty shall be imposable for any failure referred to in the said sections, if the assessee proves to the satisfaction of the Assessing Officer that there was reasonable cause for the said failure.
(2) No order imposing a penalty under this Chapter shall be made unless the assessee has been given a reasonable opportunity of being heard
Notes on Clauses:
Clause 117 of the Bill provides that no penalty will be imposable under clause 114, clause 115 or clause 116, if the assessee proves that there was reasonable cause for the failure to comply with the provisions of the said clause. It is further proposed that no order imposing a penalty under this Chapter shall be made unless the assessee has been given a reasonable opportunity of being heard.
