Levy of Penalty u/s 221 by A.O. is discretionary and can be waived off if Good and sufficient reasons exists

Brief about the case The Assessee filed his return on 30.03.2008 declaring total income of Rs.62799405/-comprising of Short Term Capital Gains of Rs.4,73,30,889/- and Long Term Capital Gains of Rs. 1,53,11,448/- along with salary income. The tax payable on the returned income was Rs.5317680/-. However, the assesee only paid Rs.1100887/- and the balance of Rs.4216773/- remained unpaid. The AO after processing the return raised a demand of Rs.6207590/- along-with interest. The case was further selected for scrutiny and the assessment was completed u/s 143(3) on 4/12/2008 by treating the share tr...