There was delay in depositing the tax deducted at source. An application for compounding of offences was made. Though assessee was served with letters of intimation informing date on which they should present themselves and seek relief in terms of compounding application, they could not depute a representative to remain present Assessee’s application was rejected and a criminal complaint was filed. Against said order petition was filed. Allowing the petition the Court held that the  respondents had not applied their mind to compounding applications by dealing with merits thereof. Since application had been dismissed only on ground that nobody attended proceedings when said application was taken up for hearing, impugned order was to be set aside and matter was to be remanded back for disposal on merits and in accordance with law.