A criminal case was filed against the assessee under section 276C(1) read with sections 277 and 278B on the ground of wilful attempt to evade tax relating to the AY 1990-91. The assessee filed an application for compounding of the offences before the Chief Commissioner who issued a show-cause notice for rejecting the application relying upon the Board’s Circular F. No. 285/08/2014-IT (Inv.V)/147 dated June 14, 2019. On a writ petition allowing the petition, that on the facts and circumstances and the provisions of sub-section (2) of section 279 the compounding application of the assessee could not be rejected by the Income-tax authority concerned on the ground of delay in filing the application. It was not disputed by the respondents in the court or in the show-cause notice that the criminal case in question was still pending. The Income-tax authority was to consider the compounding application of the assessee in accordance with law. (AY. 1990-91)
G. P. Engineering Works Kachhwa v. UOI (2022) 446 ITR 563 // ( 2023) 332 CTR 104/ 224 DTR 257/ ( 2023) 332 CTR 104/ 224 DTR 257(All.) (HC)
S. 279 : Offences and prosecutions-Sanction-Chief Commissioner-Commissioner-Wilful attempt to evade tax-Application for compounding of offences-Limitation-Show-cause notice issued for rejection of compounding of offences on ground of Bar of limitation relying on Circular issued by Central Board of Direct Taxes-Circular cannot override statutory provision-Authority to consider application in accordance with law. [S. 276C, 277, 278B, 279(2), Art. 226]