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2015 (2) TMI 409 - HC - Income TaxReduction of penalty levied under section 140A(3) - Tribunal restored the assessee's exigibility to penalty, but while doing so, has reduced the quantum of penalty to ₹ 10 lacs for each financial year - Held that:- Tribunal reduced the quantum of penalty to ₹ 10 lacs for each financial year without assigning any reason other than holding that “the ends of justice” and a “liberal interpretation” require that the penalty be reduced. The mere use of the words “the ends of justice” and “a liberal interpretation” while reducing penalty from ₹ 66 lacs to ₹ 10 lacs each, particularly when the Tribunal had accepted that the assessee has not discharged onus to explain its default, are insufficient to infer a legal exercise of discretion to determine the quantum of penalty. The impugned order, therefore, does not meet the parameters of a judicial, much less a quasi judicial determination. The appeals are, therefore, partly allowed, the assessee's exigibility to penalty is affirmed but the quantum of penalty determined by the Tribunal is set aside and the appeals are restored to the Tribunal for adjudication afresh and in accordance with law so as to determine the quantum of penalty to be imposed upon the appellants.
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