S. 276B : Offences and prosecutions-Failure to pay to the credit tax deducted at source-Compounding application-Failure to dispose the compounding application by the Principal Commissioner-Directed the Principal Commissioner to dispose the pending compounding application with in the period of three months from today and not later than 27th February 2023. [S. 204, 278B, 279(2), Art. 226]

The prosecution was launched against the company and its directors for failure to deposit tax deducted at source as per obligation u/s. 204 of the Act . The petitioners have filed an application for compounding which is pending before the appropriate authority since 4th January, 2020, on which no action was taken till date neither any reasons communicated to the petitioners . In the meantime the Magistrate Court started proceedings and issued bailable warrants. The petitioners filed writ petition against the Revenue for failure to dispose the pending compounding application. Allowing the petition the honourable Court directed the Principal Commissioner to dispose the pending compounding application with in the period of three months from today and not later than 27th February 2023. (WP(L) No. 35424 of 2022 dt. 28th November, 2022)
Hemant Lalwani v. ITO (Bom.)(HC) www.itatonline.org
[Coram : Hon’ble Shri Justice Dhiraj Singh Thakur & Hon’ble Shri Justice Valmiki Sa Menezes]