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TMI Blog2008 (7) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... JUDGMENT (Per F.I. Rebello,J.): Admit on the following two questions : "(a) Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT is correct in deleting the penalty levied u/s. 158 BFA (2) of the Income Tax Act, 1961 without appreciating the fact that the assessee has failed to comply with the conditions stipulated in the 1st proviso to Section 158 BFA (2) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eased to hold that the power conferred is directory and not mandatory and that the word "may" cannot be read as "shall". The learned tribunal also has considered the reasons as to why the penalty should not be invoked. 3. In the present appeal, the findings of fact by I.T.A.T. and C.I.T. regarding reasons for delay in paying tax have not been assailed. The only question raised b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome determined by the Assessing Officer under Clause (c) of section 158BC. . The terminology of the said section makes it clear that there is a discretion in the Assessing Officer to direct payment of penalty. The proviso supports this interpretation. Only if the authority decides to impose penalty then, it will not be less than the tax leviable but shall not exceed three times the tax so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the statute to effectuate the legislative intention. It is equally settled law that, if the language is plain and unambiguous, one can look fairly at the language used and interpret it to give effect to the legislative intention. Tax law, nevertheless, have to be interpreted reasonably and in consonance with justice adopting a purposive approach. See Commissioner of Income tax Vs. Gwalior Rayon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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