The Chief Commissioner rejected the assessee’s application for compounding of offence under section 279(2) on the sole ground that it was filed beyond 36 months from the date of filing of the complaint, relying on CBDT Guidelines dated 16-9-2022 though the Act itself prescribed no limitation period. On a writ petition, the Court held that the CBDT Guidelines cannot be treated as a binding statutory bar and even the earlier guidelines contemplated that in appropriate cases the competent authority may consider the explanation and exercise discretion notwithstanding the stipulated period. The Chief Commissioner had mechanically rejected the application without examining the facts and circumstances and proceeded on the erroneous premise that he had no jurisdiction to entertain the application beyond 36 months. Such an approach was unsustainable. Accordingly, the rejection order was set aside and the matter was remanded to the Chief Commissioner to reconsider the assessee’s application for compounding by exercising proper discretion in accordance with law.