TMI Blog2008 (7) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... first part of the section as mandatory - C.I.T. & I.T.A.T. have recorded reasons for exercise of their discretion - uphold the decision of I.T.A.T. that the section is directory, not mandatory & that the word “may” cannot be read as “shall” - 30 OF 2008 - - - Dated:- 2-7-2008 - Mr. B.M.Chatterjee with Mrs.Poonam Bhosale for the Appellant. Mr. Atul Jasani with Mr. P.C. Tripathi for Responden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erred by the assessee and cancelled the penalty under Section 158BFA(2) of the Income Tax Act. While considering the deletion of penalty, C.I.T. considered, the explanation given by the assessee that tax had been paid on the undisclosed income before the completion of the assessment. Various other reasons have also been rendered. . In the appeal before I.T.A.T., the learned tribunal in Para 3.4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le but which shall not exceed three times the amount of tax so leviable in respect of the undisclosed income determined by the Assessing Officer under clause (c) of section 158BC." . The language used under Section 158BFA(2) is may direct the person shall pay by way of penalty a sum which shall not be less than the amount of tax leviable, but which shall not exceed three times the amount of tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax, does not result in reading the first part of the section as mandatory. The proviso to the sub section makes it clear that there is discretion conferred on the Commissioner for the reasons which are set out therein. Whilst considering taxing statute, the Supreme Court has held that it is settled law that the expressions used in a taxing statute would ordinarily be understood in the sense in w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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