Assessee had deducted tax at source (TDS) in respect of various payments made to employees towards salary but did not deposit TDS amount into Central Government account by stipulated dues dates A complaint was instituted against assessee for prosecution under section 276B. Assessee had already deposited entire TDS amount deducted along with delayed interest.  Assessee sought benefit contemplated under section 278AA.Application of assessee seeking discharge from criminal prosecution initiated by revenue was turned down. On appeal the Court held that  in view of Circular F. No. 285/08/2014-IT(INV. V)/163, dated 17-10-2024   issued by CBDT, wherein department had harmonized entire procedure for compounding all kinds of offences under Income-tax Act arising out of curable defects, assessee could resort to procedural remedy under section 320 of Cr.P.C. and seek for compounding of offence.

If  application is moved before the Court below, the same shall be considered on its merit without being influenced by the observation of this Court in the present order.