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TMI Blog2010 (10) TMI 856X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t year 1984-85:- "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in quashing the penalty for the period from 25.2.1985 to 31.10.1985 and sustaining it from 1.11.1985 to 24.3.1986, u/s 140-A(3) of the Income Tax Act, 1961? 2. The assessee was engaged in the business of manufacturing and bottling of soft drinks. It failed to deposit the entire amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Tribunal granted relief for the period from 25.2.1985 to 31.10.1985. 3. We have heard learned counsel for the parties. 4. Learned counsel for the revenue referred to para 9 of the order of the Tribunal, taking a view that plea of financial hardship could not be accepted, for the reasons mentioned therein and submitted that thereafter, relief could not have been given. On the other han ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... well known event. 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. 6. Accordingly, question of law is answered against the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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