S. 279 : Offences and prosecutions-Sanction-Chief Commissioner- Commissioner-Compounding application filed beyond 36 months from the date of filing of complaint-Rejection of application-CBDT guidelines are not statute-Rejection of compounding application is quashed-Commissioner is directed to consider all facts and circumstances and decide whether such facts make out the case for exercising discretion in favour of compounding the offence. [S. 279(2), Art. 226]
The Chief Commissioner has dismissed the compounding application of the petitioner on the ground that the application was filed beyond the period of 36 months from the date of the complaint relying upon paragraph 9.1 of CBDT guidelines dated 16 November 2022 . On writ allowing the petition the Court held that the competent authority has treated the guidelines as a binding statute and the competent authority had no jurisdiction to entertain a compounding application because it was made beyond 36 months. Court directed the Chief Commissioner to re consider the application as per the observation of the Supreme Court in Vinubhai Mohanlal Dobaria v. CCIT (2025) 171 taxmann.com 268 (SC). Accordingly the writ petition is allowed. (WP (L) No. of 21032 of 2024 dt. 4-3-2025)
L. T. Stock Brokers Pvt. Ltd. v. CCIT (Bom)(HC) www.itatonline.org
[Coram : Hon’ble Shri Justice M.S. Sonak & Hon’ble Shri Justice Jitendra Jain]