{"id":13421,"date":"2019-06-15T11:51:44","date_gmt":"2019-06-15T06:21:44","guid":{"rendered":"http:\/\/itatonline.org\/info\/?p=13421"},"modified":"2019-06-15T11:51:44","modified_gmt":"2019-06-15T06:21:44","slug":"download-cbdt-guidelines-for-compounding-of-offences-under-direct-tax-laws-2019","status":"publish","type":"post","link":"https:\/\/itatonline.org\/info\/download-cbdt-guidelines-for-compounding-of-offences-under-direct-tax-laws-2019\/","title":{"rendered":"Download CBDT Guidelines For Compounding Of Offences Under Direct Tax Laws, 2019"},"content":{"rendered":"<p>The CBDT has issued a directive dated 14th June 2019 in which it has specified the guidelines for compounding of offenses under section 279(2) of the Act. The Guidelines supercede the earlier guidelines on the subject. The Guidelines shall come into effect from 17.06.2019 and shall be applicable to all applications for compounding received on or after the aforesaid date. Applications received before 17.06.2019 shall continue to be dealt with in accordance with the Guidelines dated 23.12.2014.<\/p>\n<p><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script><br \/>\n<!-- responsive --><br \/>\n<ins class=\"adsbygoogle\"\n     style=\"display:block\"\n     data-ad-client=\"ca-pub-6440093791992877\"\n     data-ad-slot=\"6406297397\"\n     data-ad-format=\"auto\"><\/ins><br \/>\n<script>\n(adsbygoogle = window.adsbygoogle || []).push({});\n<\/script> <\/p>\n<div class=\"journal2\"><a href=\"https:\/\/itatonline.org\/info\/download-cbdt-guidelines-for-compounding-of-offences-under-direct-tax-laws-2019\/cbdt-guidelines-compounding-offenses\/\" rel=\"attachment wp-att-13422\">Click here to download the Guidelines For Compounding Of Offences Under Direct Tax Laws, 2019 dated 14th June 2019<\/a><\/div>\n<blockquote><p>F.No.28S\/08\/2014-IT(lnv.V)\/ ILl, Government<br \/>\nof India<br \/>\nMinistry of Finance<br \/>\nDepartment of Revenu e<br \/>\n(Central Board of Direct Taxes)<br \/>\n*** * **<br \/>\nC-Block, Dr. S.P. Mukherjee Civic Centre,<br \/>\nMinto Road, New Delhi- l l00(}2.<br \/>\nDated: 14th June 2019<br \/>\nTo,<br \/>\nAll Pr.CCsIT\/CC sIT\/Pr.DGslT\/DGsIT<br \/>\nMadam\/Sir,<br \/>\nSubject: Guidelines for Compounding of Offences under Direct Tax Laws, 2019<br \/>\nIn the light of references received from the field formation from time to<br \/>\ntime, the existing Guidelines on Compounding of Offences under the<br \/>\nIncome-tax Act, 1961 (the Act) have been reviewed. In supersession of earlier<br \/>\nGuidelines on this subject, including the Guidelines of the Board issued vide<br \/>\nF.No.285\/35\/2013 1T(lnv.V)1108 dated n rd December 2014, the following<br \/>\nGuidelines are issued for compliance by all concerned.<br \/>\n2. These Guidelines shall come into effect from 17.06.2019 and shall be<br \/>\napplicab le to all applications for compounding received on or after the<br \/>\naforesaid date.The applications received before 17.06.2019 shall continue to be<br \/>\ndealt with in accordance with the Guidelines dated 23.12.2014.<br \/>\n3. Compounding Provision<br \/>\nSection 279(2) of the Act provides that any offence under Chapter XXII<br \/>\nof the Act may, either, before or after the institution of proceedings, be<br \/>\ncompounded by the Pr. CCIT\/CCIT\/Pr. DGIT\/DGIT. As per section 2(15A)<br \/>\n.-<br \/>\nand 2(21) of the Act, Chief Commissioner of Income Tax includes Principal<br \/>\nChief Commissioner of Income Tax, and Director General of Income Tax<br \/>\nincludes Principal Director General of Income Tax. These Guidel ines are<br \/>\nissued in exercise of power U\/S 119 of the Act read with explanation below<br \/>\nsub-section (3) of section 279 of the Act.<br \/>\n4. Compounding is not a ma tter of right<br \/>\nCompounding of offences is not a matter of right. However, offences<br \/>\nmay be compounded by the Competent Authority on satisfaction of the<br \/>\neligibility conditions prescribed in these Guidelines keeping in view factors<br \/>\nsuch as conduct of the person, the nature and magnitude of the offence in the<br \/>\ncontext ofthe facts and circumstances of each case.<br \/>\n5. Applicability of these Guidelincs to prosecutions under IPC<br \/>\nProsecution instituted under Indian Penal Code(&#8216;IPC&#8217;), if any, cannot be<br \/>\ncompounded. However, section 321 of Criminal Procedure Code, 1973,<br \/>\nprovides for withdrawal of such prosecution. In case the prosecution<br \/>\ncomplaint filed under the provisions ofboth Income -tax Act, 1961 and the IPC<br \/>\nare based on the same facts and the complaint under the Income-tax Act, 1961<br \/>\nis compounded, then the process ofwithdrawal ofthe complaint under the IPC<br \/>\nmay be initiated by the Competent Authority.<br \/>\n6. Classification of Offences<br \/>\nThe offences under Chapter-XXII of the Act are classified into two parts<br \/>\n(Category &#8216;A&#8217; and Catego ry &#8216;B&#8217;) for the limited purpose of Compounding of<br \/>\nOffences.<br \/>\n6.1 Category &#8216;A&#8217;<br \/>\nOffences punishable under the following sections are included III<br \/>\n2<br \/>\n.-<br \/>\nCategory &#8216;A&#8217;:<br \/>\nS.No. Section DescriptionlHeading of section<br \/>\nI. 276 (Prior to 01\/04\/1976) &#8211; Failure to make payment or deliver<br \/>\nreturn s or statements or allow inspection<br \/>\nll . 276B (Prior to 01\/04\/1989) &#8211; Failure to deduct or pay tax<br \/>\n111 276B (w.e.f. 01\/04\/1989 and up-to 30\/5\/199 7)- Failure to pay tax<br \/>\ndeducted at source under Chapter XVII-B<br \/>\nIV 2768 Failure to pay tax deducted at source under chapterXVII-B or<br \/>\ntax payable under section 115 -0 or 2nd proviso the section<br \/>\n1948 to the credit of the Central Government (w.e.f.<br \/>\n01\/06\/1997)<br \/>\nv. 2768 B Failure to pay the tax collected at source<br \/>\nVI. 276CC Failure to furnish Return ofIncome<br \/>\nVll 276CCC Failure to furnish returns of income in search cases in block<br \/>\nassessment scheme<br \/>\n&#8230;<br \/>\nVlll . 276DD (Prior to 1.04.1989) &#8211; Failure to comply with the provisions<br \/>\nof section 269SS<br \/>\nIX. 276E (Prior to 1.04.1989) &#8211; Failure to comply with the provisions<br \/>\nof section 269 T<br \/>\nx. 277 False statement III verification etc. with reference to<br \/>\nCategory &#8216;A&#8217; offences<br \/>\nXl. 278 Abetment of false return etc. with reference to Category &#8216;A&#8217;<br \/>\noffences<br \/>\n6.2 Category &#8216;B&#8217;<br \/>\nOffences punishable under the following sections are included III<br \/>\nCategory&#8217;B&#8217;:<br \/>\nS. No. Section Desc ription\/ Heading of section<br \/>\n1. 276A Failure to comply with the provision of sections 178(1) and<br \/>\n178(3)<br \/>\n3<br \/>\n11. 276AA (prior to 01\/10\/1986)- Failure to comply with the provisions<br \/>\nof section 269 AB or section 269 I.<br \/>\nlll . 276AB Failure to comply with the provisions of sections 269UC,<br \/>\n269UE and 269UL<br \/>\nIV. 276C(1) Willful attempt to evade tax , etc<br \/>\nv. 276C(2) Willful attempt to evade payment of taxes, etc<br \/>\nVI. 276D Failure to produce accounts and documents<br \/>\nV11 277 False statement III verification etc. with reference to<br \/>\nCategory &#8216;B&#8217; offences<br \/>\n.. .<br \/>\n277A Falsifi cation of Vlll books of account or documents, etc.<br \/>\nIX. 278 Abetment of false return, etc. with reference to Category &#8216;B&#8217;<br \/>\noffences<br \/>\n6.3 Offences under sections 275A , 275B and 276 of the Act will not be<br \/>\ncompounded.<br \/>\n7. Eligibility Conditions for Compounding<br \/>\nAll the following conditions should be satisfied for considering<br \/>\ncompounding of an offence:<br \/>\n1. An application is made to the Pro CCIT\/CClT\/Pr. DGITIDGIT having<br \/>\njurisdiction over the case for compounding of the offence(s) in the<br \/>\nprescrib ed format (Annexure-I) in the form ofan affidavit on a stamp<br \/>\npaper of Rs.100\/-.<br \/>\n11. The compounding application may be filed suo -mota at any time after<br \/>\nthe offence(s) is committed irrespective of whether it comes to the<br \/>\nnotice of the Department or not. However, no application of<br \/>\ncompounding can be filed after the end of 12months from the end ofthe<br \/>\nmonth in which prosecution complaint, if any, has been filed in the<br \/>\n4<br \/>\n\u2022<br \/>\ncourt oflaw in respect of the offence for which compounding is sought.<br \/>\n111. The person has paid the outstanding tax, interest (including interest u\/s.<br \/>\n220 of the Act), penalty and any other sum due, relating to the offence<br \/>\nfor which compounding has been sought before making the application.<br \/>\nHowever, if any related demand is found outstanding on verification by<br \/>\nthe Department, the same should be intimated to the applicant and if<br \/>\nsuch demand including interest uls 220 is paid within 30 days of the<br \/>\nintimation by the Department, then the compounding application would<br \/>\nbe deemed to be valid.<br \/>\nIV. The person undertakes to pay the compounding charges determined in<br \/>\naccordance with these Guidelines by the Pro CCIT\/CCIT\/Pr.<br \/>\nDGIT\/DGIT conce rned.<br \/>\nv. The person undertakes to withdraw appeals filed by him, if any, related<br \/>\nto the offence(s) sought to be compounded. In case such appeal has<br \/>\nmixed grounds , one or more of which may not be related to the<br \/>\noffence(s) under consideration, an undertaking shall be given for<br \/>\nwithdrawal of such grounds as are related to the offence to be<br \/>\ncompounded.<br \/>\nVI. Any application for compounding of offence u\/s 276B\/276BB of the<br \/>\nAct by an applicant for any period for a particular TAN should cover all<br \/>\ndefaults constituting offence uls 276B\/276BB in respect of that TAN<br \/>\nfor such period.<br \/>\n8. Offences normally not to be compounded<br \/>\n8.1 The following offences are generally not to be compounded:<br \/>\n1. Category &#8216;A&#8217; offence on more than three occasions. However, m<br \/>\nexceptional circumstances compounding requested in more than three<br \/>\noccasions can be considered only on the approval of the Committee<br \/>\n5<br \/>\nreferred to in Para 10 of these Guidelines. The &#8216;occasion&#8217; is defined in<br \/>\nPara 8.2.<br \/>\nH. Category &#8216;B&#8217; offence other than the first offence(s) as defined in Para 8.2<br \/>\nfor the purpo se of these Guidelines.<br \/>\nHI. Offences committed by a person for which he was convicted by a court<br \/>\nof law under Direct Taxes Laws.<br \/>\nIV. Any offence in respect of which, the compounding application has<br \/>\nalready been rejected, except in the cases where benefit of rectification<br \/>\nis available in these Guidelines.<br \/>\nv. The cases of a person as main accused where it is proved that he has<br \/>\nenabled others in tax evasion such as, through entitie s used to launder<br \/>\nmoney or generate bogus invoices of sale\/purchase without actual<br \/>\nbusiness, or by providing accommodation entries in any other manner as<br \/>\nprescribed in section 277A of the Act.<br \/>\nVI. Offences committed by a person who, as a result of investigation<br \/>\nconducted by any Central or State Agency and as per information<br \/>\navailable with the Pro CCIT\/CCIT\/Pr. DGIT\/DGIT concerned, has been<br \/>\nfound involved, in any manner, in anti-national\/terrorist activity.<br \/>\nvii. Offences committed by a person who was convicted by a court of law<br \/>\nfor an offence under any law, other than the Direct Taxes Laws, for<br \/>\nwhich the prescribed punishment was imprisonment for two years or<br \/>\nmore, with or without fine and which has a bearing on the offence<br \/>\nsought to be compounded.<br \/>\nVHI. Offences committed by a person which, as per information available<br \/>\nwith the Pro CCIT\/CCIT\/Pr. DGIT\/DGIT concerned, have a bearing on a<br \/>\ncase under investigation (at any stage including enquiry, filing of<br \/>\nFIR\/complaint) by Enforcement Directorate, CEI, Lokpal, Lokayukta or<br \/>\nany other Central or State Agency.<br \/>\n6<br \/>\nIX. Offences committed by a person whose application for<br \/>\n&#8216;plea-bargaining&#8217; under Chapter XXI-A of &#8216;Code of Criminal<br \/>\nProcedure&#8217; in respect of any offence is pending in a Court or where a<br \/>\nCourt has recorded that a &#8216;mutually satisfactory disposition of such an<br \/>\napplication is not worked out&#8217; and such offence has bearing on offence<br \/>\nsought to be compounded.<br \/>\nx. Any offence which has bearing on an offence relating to undisclosed<br \/>\nforeign bank account\/assets in any manner.<br \/>\nXl. Any offence which has bearing on any offence under the Black Money<br \/>\n(Undisclosed Foreign Income and Assets) and Imposition of Tax Act,<br \/>\n2015.<br \/>\nXll. Any offence which has bearing on any offence under the Benami<br \/>\nTransactions (Prohibition) Act, 1988.<br \/>\nXII I. Any other offence , which the Pr. CCIT\/CCITIPr. DGIT\/DGIT<br \/>\nconcerned considers not fit forcompounding in view of factors such as<br \/>\nconduct ofthe person, nature and magnitude of the offence.<br \/>\n8.2 Meaning of terms&#8221;oeeasion&#8221; and &#8220;first offence&#8221; for the purpose of<br \/>\nthese Guidelines will be as under-<br \/>\n8.2.1 If in one instance the assessee files multiple applications for one or<br \/>\nmore than one Assessment Year (AYs), all of these applications shall<br \/>\nbe treated as one &#8220;occ asion&#8221; .<br \/>\n8.2.2 First offence means, offence(s) under any of the Direct Tax Laws:<br \/>\n(a) Offences committed prior to any ofthe following-<br \/>\nI. the date of issue of any letter\/notice in relation to the<br \/>\nprosecution, or<br \/>\nii. Any intimation relating to filing ofprosecution complaint sent<br \/>\nby the Department to the person concerned, or<br \/>\n7<br \/>\n.-<br \/>\n111. Launching of any prosecution,<br \/>\nwhichever is earlier.<br \/>\nOr<br \/>\n(b) Offence(s) not detected by the department but voluntarily<br \/>\ndisclosed by a person pnor to the filing of applicati on for<br \/>\nCompounding ofOffence(s) in the case under any Direc t Tax Acts<br \/>\nfor one assessment year or more .<br \/>\nFor this purpose, the offence is relevant if it is committed by the same<br \/>\nperso n\/entity. Further, the first offence is to be determined separate ly with<br \/>\nreference to each section of the Act under which it is committed.<br \/>\n8.3 Notwithstanding anything contained in these Guidelines, the<br \/>\nFinance Minister may relax restrictions in Para 8.1 above for<br \/>\ncompounding of an offence in a deservi ng case, on consideration of a<br \/>\nreport from the Board on the petition of an applicant.<br \/>\n9. Relaxation of time<br \/>\n9.1 The restrictions imposed in Para 7(ii) of these Guidelines for<br \/>\ncompounding of an offenc e in a deserving case may be relaxed, where<br \/>\napplication is filed beyond 12 months but before completion of 24 months from the<br \/>\nend ofmonth in which complaint was filed, by the Committee defmed in Para 10 of<br \/>\nthese Guidelines, provided that such delay should be attributable to reasons beyond<br \/>\nthe applicant&#8217;s control.However, a plea ofpendency ofappeal at any stage or before<br \/>\nany authority cannot be treated as a reason beyond the applicant&#8217; s control, because<br \/>\n8<br \/>\nfurnishing an undertakingto withdrawthe appeal(s) having bearing on the offenceis<br \/>\na prerequisiteas per clause 7(v) above.<br \/>\n9.2 However, in all such cases where relaxat ion has been provided in this<br \/>\nPara, the compounding charges would be 1.25 times the normal compounding<br \/>\ncharges as applicabl e to the offence on the date of filing of the original<br \/>\ncompounding application.<br \/>\n10. Authority Competent to Compound an Offence<br \/>\n10.1 The Pro CCIT\/CCIT\/Pr. DGIT\/DGIT having jurisdiction over the person,<br \/>\nseeking Compounding of an Offence, is the Competent Authority for<br \/>\ncompounding of all Category &#8216;A&#8217; and Category &#8216;B&#8217; offences. However, an order<br \/>\nin case of an application for compounding of an offence, involving<br \/>\ncompounding charges (as explained in Para 12 below) in excess of<br \/>\nRs.lO,OO,OOO\/- (Rupees Ten Lakhs) shall be passed by the Pro CCIT\/CCIT\/Pr.<br \/>\nDGIT\/DGIT concerned only on the prior approval of a Committee comprising<br \/>\nof three officers of the Region concerned, namely Pro CCIT\/CCIT\/Pr.<br \/>\nDGIT\/DGIT having jurisdiction over the case and two other Officers of the rank<br \/>\nof Pr. CCIT\/CCIT\/Pr. DGIT\/DGIT constituted by the Pr.CCIT ofthe Region. In<br \/>\ncase such officers are not available within the Region, a suitable Officer of the<br \/>\nrank ofCCIT\/DGIT from any nearby Region may be co-opted as Member by the<br \/>\nPro CCIT.<br \/>\n10.2 If a deductor has committed an offence u\/s 276B\/276BB of the Act for<br \/>\nnon-payment of TDS in respect ofboth resident and non-resident deductees and<br \/>\ntherefore the jurisdiction over such deductor lies with more than one Pro<br \/>\nCCIT\/CCIT\/Pr. DGIT\/DGIT, then the Pro CCIT\/CCIT\/Pr. DGIT\/DGIT in<br \/>\nwhose juri sdiction compounding application has been filed will be the<br \/>\n9<br \/>\nCompetent Authority. However, he shall compound the offence only on the<br \/>\napproval of Committee comprising of three Officers of the rank of CCIT from<br \/>\namong the CCITIDGIT\/Pr.CCIT\/Pr.DGIT having jurisdiction over the<br \/>\napplicant, constituted by the Pr.CCIT of the region .<br \/>\n10.3 In case an applicant having more than one TAN lying in the jurisdiction<br \/>\nof two or more Pr. CCIT\/CCIT\/Pr. DGIT\/DGIT wants to file compounding<br \/>\napplication in respect of offences committed u\/s 276B\/276BB in respect oftwo<br \/>\nor more TANs falling in the jurisdiction of two or more Pr. CCIT\/CCIT1Pr.<br \/>\nDGITIDGIT, the application shall be filed before the Pr. CCIT\/CCIT having<br \/>\njurisdiction over the TAN of the region in which PAN jurisdiction of the<br \/>\napplicant is falling . Such Pr. CCIT\/CCIT having jurisdiction over such TAN<br \/>\nwill be treated as Competent Authority. For such cases the Committee will be<br \/>\nconstituted by the Pr. CCIT in whose region jurisdiction over PAN lies and will<br \/>\nalso be comprising of three members including Competent Authority. The<br \/>\nreport from all j urisdictional authorities concerned from different offender<br \/>\nTANs shall be called by the Competent Authority.<br \/>\n10.4 The Competent Authority will act as the Member Secretary and convene<br \/>\nthe meeting, as well as maintain the records.<br \/>\n11. Compounding Procedure<br \/>\nI. On receipt of the application for compounding, the report on the same<br \/>\nshall be obtained from the Assessing Officer\/Assistant or Deputy<br \/>\nDirector concerne d who shall submit it promptly along-with duly filled<br \/>\nin check-list (Annexur e-2), to the authority competent to compound,<br \/>\nthrough proper channel.<br \/>\n11. The Competent Authority shall duly consider and dispose of every<br \/>\napplication for compounding through a speaking order in the suggested<br \/>\n10<br \/>\nformat (Annexure-3) either by reject ing or by intimating the<br \/>\ncompounding charges payable. Such order may be passed within six<br \/>\nmonths from the end of the month of its receipt (excluding the time for<br \/>\npayment of the compounding charges) as far as possible .<br \/>\nIll. Where compounding application is found to be acceptable, the<br \/>\nCompetent Authority shall intimate the amount of compounding<br \/>\ncharges to the applicant, requiring him to pay the same within one<br \/>\nmonth from the end of the month of receipt of such intimation . On<br \/>\nwritten request of applicant for further extensio n of time under<br \/>\nexceptional circumstances, the Pro CCIT\/CCIT\/Pr. DGIT\/DGIT may<br \/>\nextend this period by three months. Extension beyond three months<br \/>\nshall not be permissible except with the previous approval in writing of<br \/>\nthe Committee defined in Para 10 of these Guidelines. However, no<br \/>\nextension beyond twelve months from the end of month in which<br \/>\nintimation of compounding charges was given to the applicant shall be<br \/>\ngiven except with the previous approval ofMember (Inv.), CBDT on a<br \/>\nproposal of the competent authority concerned.<br \/>\nIV. Whenever the compounding charges are paid beyond one month from<br \/>\nthe end of month in which it was intimated to the applicant, if extended<br \/>\nby the Competent Authority, he shall have to pay additional<br \/>\ncompounding charge at the rate of 2% per month or part of the month<br \/>\non the unpaid amount of compounding charges upto three months and<br \/>\n3% if the Competent Authority has extended the payment period<br \/>\nbeyond three months.<br \/>\nv. The Competent Authority shall pass the compounding order within<br \/>\none month from the end of the month of payment of compoundi ng<br \/>\ncharges . Where compounding charge is not deposited within the time<br \/>\nallowed , the compounding application shall be rej ected after giving the<br \/>\nII<br \/>\napplicant an opportunity of being heard only III relation to<br \/>\ncompounding charges payable.<br \/>\nVI. The order of acceptance\/rejection of application of compounding shall<br \/>\nbe brought to the notice of the Court, where the prosecution complaint<br \/>\nwas filed\/or the complaint is pending, immediately through<br \/>\nprosecution counse l in all cases where prosecution proceedings have<br \/>\nbeen instituted.<br \/>\nVII. Normally any offence in respect of which the compounding application<br \/>\nhas been reje cted is not considered for compounding as per Para<br \/>\n8.1(iv). However, if any compounding application has been rejected<br \/>\nsolely on account oflate payment of compounding charges or shortfall<br \/>\nin payment of compounding charges and if such shortfall is for some<br \/>\nbonafide mistakes or on some other technical grounds, such<br \/>\ncompounding order can be rectified at the written requ est of applicant<br \/>\nprovided the payment of compounding charges was made before<br \/>\nrejection or time allowed by the Competent Authority whichever is<br \/>\napplicable. A decis ion to rectify such order can be taken by the<br \/>\nCommittee as per Para 10 after considering various facts and<br \/>\ncircumstances of the case . However, the applicant will be required to<br \/>\npay interest as per Clause (iv) of this Para, on the unpaid compounding<br \/>\ncharges from the due date of payment as per original intimation of<br \/>\ncompounding along with the shortfall in compounding charges.<br \/>\nVll l. The timel ines mentioned for processing the compounding applications<br \/>\nprescribed in these Guidelines are administrative and indicative for<br \/>\nwork management and do not prescribe a limitation period for disposal<br \/>\nof the compounding application.<br \/>\nIX. Wherever the facility to perform any function relating to processing of<br \/>\nany compounding application is available on ITBA, such function<br \/>\n12<br \/>\nshould be performed on ITBA.<br \/>\n12. Compounding Charges<br \/>\nThe compounding charges shall include compounding fee, prosecution<br \/>\nestablishment expenses and litigation expenses, including Counsel&#8217;s fee.<br \/>\n12.1 The compounding fee shall be computed in accordance with Para 13 of<br \/>\nthese Guidelines for various offences. Prosecution establishment expenses will<br \/>\nbe charged at the rate 10% of the compoundi ng fees subject to a minimum of<br \/>\nRs.25,000\/- in addition to litigation expenses including Counsel&#8217;s fees<br \/>\npaid\/payable by the Department in connection with offence(s) compounded by<br \/>\na single order. In a case where the litigation expenses are not readily<br \/>\nascertainable, the competent authority may arrive at litigation expenses , inter<br \/>\nalia, on the basis of rates prescribed by the Government and on the basis of<br \/>\nexisting records with the Government and the counsels.<br \/>\n12.2 In all cases where relaxation of time as provided III Para 9 of the<br \/>\nGuidelines is allowed , the compounding charges shall be 1.25 time of the<br \/>\nnormal compounding charges.<br \/>\n12.3 Wherever, extens ion of time allowed to make compounding charges is<br \/>\nallowed beyond one month from the end of intimation ofcompounding charges<br \/>\nin accordance with Compounding Guidelines, the applicant shall have to pay<br \/>\nadditional compounding charges @ 2% per month or part of month on the<br \/>\nunpaid amount of the compounding charges upto three months and 3% for<br \/>\nperiod beyond three months .<br \/>\n12.4 The compounding charges are payable in addition to the tax, interest and<br \/>\npenalty, if any payable or imposable as per provisions of the Act. Such tax,<br \/>\n13<br \/>\n,,-<br \/>\ninterest and penalty as mentioned in Para 7(iii) are to be paid before filing the<br \/>\ncompounding appl ication as required in these Guidelines.<br \/>\n13. Fees for compounding<br \/>\nFor the purpose of computation of the compounding fee, the word &#8220;tax&#8221;<br \/>\nmeans- tax including surcharge and any cess by whatever name called, as<br \/>\napplicable.<br \/>\nThe fees for compounding of offences shall be as follows:<br \/>\n13.1 Section 276B- Failure to pay the tax deducted at source<br \/>\nSection 276BB- Failure to pay the tax collected at source<br \/>\n13.1.1 In respect of applicati on for Compounding of Offences, the<br \/>\ncompounding fee shall be calculated as under-<br \/>\n(i) 2% per month or part of a month of the amount of tax in default<br \/>\ndisclosed in the compounding application in those cases, where<br \/>\nthe assessee has suo-moto filed compounding applic ation, before<br \/>\nany offence u\/s. 276B\/276BB ofthe Act for any period is brought<br \/>\nto his knowledge by the Department. Such type of offence would<br \/>\nalso constitute an &#8220;occasion&#8221; for the purpo se of Para 8.1. Such<br \/>\noffences which are detected in the course of any search and<br \/>\nseizure or survey operation will not fall in this category.<br \/>\nHowever, the compounding fee under this clause shall not exceed<br \/>\nthe TDS amount and interest u\/s 201(lA) taken together, if the<br \/>\ndefault in deposit ofTDS is less than Rs.l,OO,OOO\/- (Rupees One<br \/>\nlakh).<br \/>\n(ii) 3% per month or part of a month of the amount of tax in default<br \/>\ndisclosed in the compounding application for first occasionin<br \/>\n14<br \/>\nr &#8211;<br \/>\ncas es not covered in Para 13. 1.1(i) above.<br \/>\n(iii) In respect of any application for subsequent occasion, the<br \/>\napp licable rate for compounding of such an offence will be 5%<br \/>\nper month or part of a month of the amount of tax in default.<br \/>\n13. 1.2 The period of default for ca lculating compounding fee in th is category<br \/>\nshall be calculated from the date of deduction to the date of deposit of<br \/>\ntax deduc ted at source as is done in respect of calculating interest under<br \/>\nsection 20 1(IA) of the Act in respect of compounding application filed.<br \/>\n13.2. Section 276C (1)- Willful attempt to evade tax, etc.<br \/>\n(a) In the cases involving tax sought to be evaded (where evasion of<br \/>\ninterest and penalty may be consequential)<br \/>\nI. Where such tax sought to be evaded exceeds Rs . 25 lakh s,<br \/>\n150% of the tax sought to be evaded.<br \/>\n11. In any other case, 125% of the tax sought to be evaded.<br \/>\n(b) In cases involving attempt to evade only the penalty, 100% of penalty<br \/>\nsought to be evaded. For example, penalties which are not directly<br \/>\nrelated to tax evasion, such as penalty U\/S 27IDA etc.<br \/>\n13.3. Section 276C(2)-Willful attempt to evade payment of any tax,<br \/>\ninterest and penalty<br \/>\n3% per month or part of the month of the amount of tax, interest and<br \/>\npenalty, the payment of which was sought to be evaded, for the period of<br \/>\ndefault. The period of default for calculating the compounding fees shall<br \/>\nbe as under:<br \/>\ni) Where tax, interest or penalty as per notice of demand under<br \/>\nsection 156 of the Act is not paid, from the date immediately following<br \/>\nthe due date of payment ti ll the date of actual payment .<br \/>\n15<br \/>\nii) Where the self-assessment tax was not paid as specified in section<br \/>\n140A ofthe Act, from the due date of filing ofretum ofincome U\/S 139(1)<br \/>\nof the Act to the date of actual payment.<br \/>\nFor computing the period ofdefault, any period of stay ofdemand granted<br \/>\nby any Income Tax Authority, the Appellate Tribunal or Court shall be<br \/>\nexcluded.<br \/>\nIn case of default in furnishing the return of income on or before due date<br \/>\nU\/S 139(1) of the Act , the default perio d will be computed from the due<br \/>\ndate u\/sI39(1) to the date of actual filing of return or completion of<br \/>\nassessment, whichever is earlier and compounding fees will be ;<br \/>\n1. Where tax on returned income as reduced by tax deducted at<br \/>\nsource and advance tax , if any exceeds Rs. 25 lakhs, RsAOOO\/- per<br \/>\nday.<br \/>\n11 . In any other case; Rs. 2000\/- per day.<br \/>\nHowever, in cases where the difference between the aggregate of<br \/>\ntaxes paid\/payab le on the returned income and the aggregate of<br \/>\ntax es already paid under any provision ofthe Act as enumerated in<br \/>\nsection 140A(I ) of the Act, is less than Rs.l ,OO,OOO\/-, the<br \/>\ncompounding fees will be restri cted to that said difference amount<br \/>\nsubject to a minimum of Rs. 10,000\/-.<br \/>\nIn case of offence of non-compliance of notice u\/s 142(1)(i) of the Act,<br \/>\nthe compounding fees shall be charged at the rate of RsAOOO\/- per day<br \/>\nwhere the tax on returned income as reduced by tax deducted at source<br \/>\nand advance tax, if any exceeds Rs.25 lakhs and Rs.2,000\/- per day in<br \/>\n(b)<br \/>\n13.4 Sectio n 276CC- Failure to furnish returns of income<br \/>\n1304.1<br \/>\n(a)<br \/>\n16<br \/>\n\u2022<br \/>\nother cases from the due date u\/s 139(1) to the date specified in the notice<br \/>\nu\/s 142( I) , and at the rate of Rs. 5000\/- per day where tax on returned<br \/>\nincome as reduced by tax deducted at source and advance tax , if any<br \/>\nexceeds Rs.25 lakhs and Rs.3000\/- per day in other cases, for the period<br \/>\nbetween date specified in notice u\/s 142(1) to the date of filing of return<br \/>\nof income or completion of assessment, whichever is earlier.<br \/>\n(c) In case of offence of non-compliance of notice u\/s 148 of the Act, the<br \/>\ncompounding fees shall be charged at the rate ofRs.5000\/- per day where<br \/>\ntax on returned income as reduc ed by tax deducted at source and advance<br \/>\ntax, if any exceeds Rs.25 lakhs and Rs.3000\/- per day in other cases, from<br \/>\nthe date specified in such notice till filing of return or assessment<br \/>\nwhichever is earlier. In case, there was also default of not filing return of<br \/>\nincome within due date prescri bed u\/s 139(1), then for the period<br \/>\nbetween due date u\/s 139(1) to the date specified in the notice u\/s 148,<br \/>\ncompounding fees at the rate of RsAOOO\/- per day where the tax on<br \/>\nreturned income as reduced by tax deducted at source and advance tax, if<br \/>\nany exceeds Rs.25 lakhs and Rs.2,000\/- per day in other cases from the<br \/>\ndue date u\/s 139(1) to the date specified in the notice U\/S 148 will also be<br \/>\ncharged.<br \/>\n(d) In case ofoffence ofnon-compliance ofnotice U\/S 153AI1 53C of the Act,<br \/>\nthe compound ing fees shall be charged at the rate ofRs. 5,000\/- per day<br \/>\nwhere tax on returned income as reduced by tax deducted at source and<br \/>\nadvance tax , if any exceeds Rs.25 lakhs and Rs.3,000 \/- per day in other<br \/>\ncases, from the date specified in such notice till filing of return or<br \/>\nassessment whichever is earl ier. In case, there was also default of not<br \/>\nfiling return of income within due date prescribed u\/s 139(1), then for the<br \/>\nperiod between due date u\/s 139(1) to the date speci fied in the notice U\/S<br \/>\n153A11 53C, compounding fees at the rate ofRs.4OOO\/- per day where the<br \/>\n17<br \/>\n.-<br \/>\ntax on returned income as reduced by tax deducted at source and advance<br \/>\ntax, if any exceeds Rs.25 lakhs and Rs.2,OOO\/- per day in other cases from<br \/>\nthe due date U\/S 139(1) to the date specified in the notice U\/S 153A1153C<br \/>\nwill also be charged .<br \/>\n(e) In case where return of income filed is not only late but Self Assessment<br \/>\nTax is not paid :<br \/>\nI. These constitute two separate offences which are to be handled<br \/>\nseparately under sections 276CC and 276C(2) , and<br \/>\nII. Action u\/s 276C(2) is to be undertaken only after the issue of<br \/>\ndemand notice u\/s 143(1)\/143(3) etc.<br \/>\n1304.2 In cases where no return of income was filed, the compounding fee<br \/>\nis computed upto the date of completion of assessments. In such cases, for<br \/>\ncomputing the slab prescribed in Para 1304.1 tax on assessed income (as<br \/>\nreduced by tax deducted at source and advance tax) will be adopted.<br \/>\n1304.3 In case the income determined u\/s 143(1) is more than the returned<br \/>\nincome, tax on the same will be applied for computing tax slab prescribed in<br \/>\nPara 1304.1.<br \/>\n130404 Tax on returned income in the context of Para 1304 means tax<br \/>\nleviable (including surcharge and cess) on the returned income as reduced by<br \/>\ntax deducted at source and advance tax.<br \/>\n13.5 Section 276CCC- Failure to furnish return of income as required<br \/>\nunder section 158BC<br \/>\nThe fee for this offence shall be calculated in the same manner as for<br \/>\noffences u\/s 276CC was prescribed in the Compounding Guidelines dated<br \/>\n18<br \/>\n16.05.2008.<br \/>\n13.6 Section 276DD- Failure to comply with the provisions of Section<br \/>\n269SS (prior to 01.04.89)<br \/>\nA sum equal to 20% of the amount of any loan or deposit accepted in<br \/>\ncontravention ofthe provisions of Section 269SS.<br \/>\n13.7 Section 276E- Failure to comply with th e provisions of Section<br \/>\n269T (prior to 01.04.89)<br \/>\nA sum equal to 20% of the amount of deposit repaid in contravention of<br \/>\nthe provisions of Section 269T.<br \/>\n13.8 Section 277- False statement in verification etc.<br \/>\nSection 278 &#8211; Abetment of false return etc.<br \/>\n13.8.1 Where same set offacts and circumstances attract pros ecution uls 277 as<br \/>\nwell as section 278, the compounding fee shall be charged for offences<br \/>\nunde r these sections by treating them as one offence.<br \/>\n13.8.2 Where same set of facts and circumstances attract prosecution uls 277<br \/>\nin addition to another offence in connection with which prosecution U\/S<br \/>\n277 was attracted in case ofthe same person, no separate compounding<br \/>\nfee shall be charged for offence U\/S277. For example, where a person is<br \/>\ncharged with an offence uls 276C(1 ) as also uls 277, in respect of the<br \/>\nsame facts and circumstances, the compounding fees shall be charged<br \/>\nonly for the offence uls 276C(1) at the rates prescribed for the said<br \/>\n19<br \/>\n.-<br \/>\nsection.<br \/>\n13.8.3 Where same set of facts and circumstances attract prosecution under any<br \/>\noffence as well as u\/s 277 and\/or 278, normally, a compounding fee at<br \/>\nthe rate of 10% of the &#8216; compounding fee for the main offence&#8217; shall be<br \/>\ncharged from each of the person charged under sections 278B or 278C.<br \/>\nHowever, the authority competent to compound, after considering the<br \/>\nextent of involvement of any or all co-accused or abettor, may enhance<br \/>\nor reduce or waive the amount of compounding fee to be charged from<br \/>\nany or all the co-accusedor abettor. The compounding fees chargeable<br \/>\nfrom the co-accused or abettor shall be in addition to the compounding<br \/>\nfees which may be chargeable from the main accused.<br \/>\nIt is further clarified that:<br \/>\n(a) In the case of prosecution proceedings under sections 278B or<br \/>\n278C of the Act unless the main accused i.e. Company\/HUF comes<br \/>\nfor compounding, the offence of the co-accused cannot be<br \/>\ncompounded separately.<br \/>\n(b) If one or more co-accused has not filed the compounding<br \/>\napplication or is not agreeable to the payment of compounding<br \/>\ncharges as the case may be, then unless the main accused , on an<br \/>\nundertaking obtained and furnished from such co-accused,<br \/>\nunequivocally undertakes to pay the compounding charges on his<br \/>\nown behalf and on behalf of all such co-accused as well, the<br \/>\nCompounding of the Offence of the main accused cannot be<br \/>\naccepted.<br \/>\n13.8.4 In case where no offence under any other sections of the Act IS<br \/>\n20<br \/>\ninvolved except uls 277 or 278 of the Act, the compounding fee shall<br \/>\nbe decided by the Committee as per Para 10 having regard to the<br \/>\namount of tax which would have been evaded as a result of such<br \/>\noffence uls 277 or 278 subject to a minimum compounding fee of<br \/>\nRs.I ,00,0001- (Rupees One Lakh) which may be increased based on the<br \/>\nassessment of loss caused to the revenue directly or indirectly for each<br \/>\nof such offence on completion of assessment\/reassessment.<br \/>\n13.9 Offences, other than those described in Para 13.1 to 13.8, for which no<br \/>\ncompounding fee has been prescribed, the authority competent to<br \/>\ncompound may determine the amount of compounding fee having<br \/>\nregard to the nature and magnitude of the offence, loss of revenue<br \/>\ndirectly or indirectly attributable to such offence, subject to levy of a<br \/>\nminimum compounding fee of Rs 1,00,000\/- (Rupees One lakh) for<br \/>\neach such offence .<br \/>\n13.10 The prescribed compounding charges shall be applicable while<br \/>\ncompounding any offence . However, in extreme and exceptional cases of<br \/>\ngenuine financial hardship, the compounding charges may be suitably<br \/>\nreduced with the approval ofthe Finance Minister.<br \/>\n14. In case any pena lty proceedings which have bearing with the offence<br \/>\nsought to be compounded are pending at the time of filing of the compounding<br \/>\napplication, efforts should be made to conclude such penalty proceedings<br \/>\nexpeditiously and recover demand before concluding the compounding<br \/>\nproceedings.<br \/>\n21<br \/>\n15. Applicability of these Guid elines to offences under othe r Direct Ta x<br \/>\nLaws<br \/>\nThese Guidelines shall apply mutatis mutandis to offences under other<br \/>\nDirect Tax Laws and the compounding fee for offences under the other Direct<br \/>\nTax Laws will be same as prescribed supra for the corresponding provisions of<br \/>\noffences under the Income-tax Act, 1961.<br \/>\n16. The Pro CCsIT\/CCsIT\/Pr. DGsIT\/DGsIT are requested to circulate the<br \/>\nabove revised Guidelines along with its Annexure Nos. 1, 2 and 3 among all the<br \/>\nofficers of their Region for compliance .<br \/>\nEnd: As above<br \/>\nYours faithfully,<br \/>\n~ Ct-Mamta<br \/>\nBansal<br \/>\nDirector (Inv.V),<br \/>\nCBDT, New Delhi<br \/>\n.-<br \/>\nCopy to-<br \/>\n1. The PS to the Revenue Secretary<br \/>\n2. The Chairman, CBDT<br \/>\n3. All Members, CBDT<br \/>\n4. All officers of the rank of Joint Secretary\/C IT and above in CBDT<br \/>\n5. The CIT (Media &#038; Technical Policy), CBDT<br \/>\n6. The ADG (Systems)-4 for uploading on www.incometaxindia.gov.in<br \/>\n7. Additional DIT, Database cell, for uploading on<br \/>\nwww.irsofficersonline.gov.in<br \/>\n22<br \/>\nAnnexure 1<br \/>\nFormat of application in the form of Affidavit for Compounding of<br \/>\nOffences under Income-tax Act, 1961 to be submitted separately by each<br \/>\napplicant<br \/>\nS. Partic ulars Remarks<br \/>\nNo.<br \/>\nI. Name of the applicant<br \/>\n2. Status<br \/>\n3. Offences committed ufs *<br \/>\n4. AYs \/ Date\/ period involved in offence<br \/>\n5. Status of case (i.e. whether contemplated\/pend ing<br \/>\nin Court\/conv icted\/acquitted)<br \/>\n6. Date offi ling of complaint, if any<br \/>\n7. Whether the offe nce(s) committed by the applicant<br \/>\nis one for which compla int(s) was filed with the<br \/>\ncompetent court 12 mont hs prior to the filing ofthe<br \/>\napplication for compounding<br \/>\n8. Part iculars of offences along-with j ustification for<br \/>\ncompoundi ng (separate sheet)<br \/>\n9. Whether the app licant has paid the amount of tax,<br \/>\nintere st, penalty and any other sum due relating to<br \/>\nthe offence<br \/>\n10. Whether the appl icant undertakes to pay further<br \/>\ntax, interest, penalty and any other amount as is<br \/>\nfound to be payab le on verification of the record.<br \/>\nI I. Whether the applicant undertakes to pay the<br \/>\ncompound ing charge s as shall be intimated by the<br \/>\ndepartment.<br \/>\n12. Whether similar offe nces in the case of the<br \/>\napplicant have been compound ed earlier. If yes,<br \/>\nhow many times. Give detai ls in annexure.<br \/>\n13 . Whether the offence is first offe nce as defined in<br \/>\nPara 8.2 of the Guide lines<br \/>\n23<br \/>\n14. Whethe r the offence has been committed by the<br \/>\napplicant who, as a result of investigat ion<br \/>\nconducted by any Central or State agency has been<br \/>\nfound involved, in any manner, in<br \/>\nanti-national\/terrorist activity<br \/>\n15. Whether any enquiry\/invest igation being<br \/>\nconducted by Enforcement Directorate, CBI,<br \/>\nLokpal, Lokayukta or any other Central or State<br \/>\nagencyis pending against the applicant? If so,<br \/>\nparticulars may be given<br \/>\n16. Whether the applicant was convicted by a court of<br \/>\nlaw for an offence under any law, other than the<br \/>\nDirect Taxes Laws, for which the prescribed<br \/>\npunishment was imprisonment for two years or<br \/>\nmore, with or without fine. If so, particulars may<br \/>\nbe given along with a copy of the court&#8217;s order.<br \/>\n17. Whether, the application for &#8216;plea-bargaining&#8217;<br \/>\nunder Chapter XXI-A of &#8216;Code of Criminal<br \/>\nProcedure&#8217; is pendi ng in a Court and the Court<br \/>\nhas recorded that a &#8216;mutually sat isfactory<br \/>\ndisposition&#8217; of such an app lication is not worked<br \/>\nout?<br \/>\n18. Whether the applicant was co nvicted by a court 0<br \/>\nlaw for the offence sought to be compounded<br \/>\n19. Whether it is an offence in respect of which, the<br \/>\ncompounding application has already been<br \/>\nrejected .<br \/>\n20. Whether it is an offence which has bearing on an<br \/>\noffence relating to undisclosed foreign bank<br \/>\naccount\/assets in any manner<br \/>\n21. Whether it is an otfe nce which has bearing on any<br \/>\noffence under the Black Money (Undisclosed<br \/>\nForeign Income and Assets) and Imposition of<br \/>\nTax Act, 20 IS.<br \/>\n22. Whether it is an offence which has bearing on any<br \/>\noffence under The Benami Transact ions<br \/>\n(Prohibition) Act, 1988.<br \/>\n23. Whether it is an offence u\/s 275A, 275B and\/or<br \/>\n276<br \/>\n24<br \/>\nVERIFICATION<br \/>\nI son\/daughter of in the capacity of<br \/>\n&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;certify and solemnly affirm that the information in the above columns<br \/>\nis true and correct to the best of my knowledge and belief.<br \/>\nPlace:<br \/>\nDate:<br \/>\n* All offences for which compounding is sought<br \/>\nSignature .<br \/>\nDesignation&#8212;Current<br \/>\naddress &#8212;<br \/>\n25<br \/>\nAnnexure 2<br \/>\nSuggested Check List for Compounding as per the Guidelines issued by the<br \/>\nCBDT vide F.No.285\/08\/2014-IT(lnv.V) dated 14.06.2019 on Compounding<br \/>\nof Offences<br \/>\n(To be submitted by AOIADITIDDIT to the authority competent 10 compound through proper channel)<br \/>\n(A case can be compounded only if the answe rs to S. No. I to 22 match with the answers given below in<br \/>\nremarks column.)<br \/>\nName of the app licant<br \/>\nStatus<br \/>\nOffences u\/s<br \/>\nAYs\/ Date\/ period involved in offence<br \/>\nDate of filing of complaint, if any<br \/>\nStatus of case (i.e. whether Contemplated\/<br \/>\nPending in Court! Convicted\/ Acquitted)<br \/>\nS.No. Pa rticulars Remarks Reference of<br \/>\n(vis-a-vis Compounding Guidelin es) the File<br \/>\nsu bmitt ed<br \/>\nI. The applicant has filed a written request for compounding the Yes On Page<br \/>\noffence in the prescribed Proforma. no. . . ..<br \/>\n2. Whether the applicant has paid the amoun t of tax, interest and Yes On Page no. . &#8230;<br \/>\npenalty &#038; any other sum due relating to the default as prescribed<br \/>\nin the Guide lines.<br \/>\n3. Whether on verification of record any further amount of tax, Yes\/No If yes, give detai ls<br \/>\ninterest and pena lty &#038; any other sum was found payable by the If yes, in brief. Add<br \/>\napplicant. date of annexure if<br \/>\nintimat ion required.<br \/>\nand date On Page no. . . .<br \/>\nof<br \/>\npayment.<br \/>\n4. Whether the applicant has undertaken to pay Yes On Page<br \/>\nthe compounding charges computed as per Paras 12 &#038; 13 of the no &#8230;&#8230;.. &#8230;.<br \/>\nGuide lines.<br \/>\n5. Whether the offence(s) committed by the appl icant is one for No On Page<br \/>\nwhich complaint(s) was filed with the competent court 12 months no &#8230;&#8230;&#8230;&#8230;<br \/>\nprior to the receipt of application for compound ing.<br \/>\n26<br \/>\nI<br \/>\n6. Whethe r the offence is unde r the same section unde r which No If ye s, give details<br \/>\noffences have been committed by the applicant earl ier and wh ich in brief. Add<br \/>\nhave been compounded thre e times pr ior to the present annexure if<br \/>\nrequi red.<br \/>\napplication. On Page no&#8230; .<br \/>\nNOTE:THIS ISAPPLICABLE ONLY IN CASE OF A CATEGORY<br \/>\n&#8216;A&#8217;OFFENCE.<br \/>\nWhether the offence is the first offence as defined in para 8.2 of Yes If no, give detai ls<br \/>\n7. the Guidelines in brief. Add<br \/>\nNOTE: THIS IS APPLICABLE ONLY IN CAS E OF A annexure if<br \/>\nCATEGORY &#8216;B&#8217; OFFENCE. required.<br \/>\nOn Page no . &#8230;<br \/>\n8. Whether th e offence has been committed by an applicant who , as No If yes, give deta ils<br \/>\na res ult of investigation conducted by any Central or State agency in brief. Add<br \/>\nhas been found involved, in any mann er, in anti-natio na l\/terr or ist annexure if<br \/>\nrequired .<br \/>\nactivity On Page no . . ..<br \/>\n9. Whether the offence committed by the app licant has a bearin g on No If yes, give<br \/>\na case under investigat ion (at any stag e including enquiry, deta ils in<br \/>\nfil ing of FIR\/complaint) by Enfo rcem ent brief. Add<br \/>\nDirecto rate, CB I, Lokpal, Lokayukta or any other Central or State annexure if<br \/>\nagency&#8217; req uired.<br \/>\nOn Page<br \/>\nno .. ..<br \/>\n10. Whether the offence has been committe d by the applicant who No If ye s, give<br \/>\nwas co nvicted by a court of law for an offe nce under any law, detai ls in<br \/>\noth er than the Direct Taxes Laws, for which the prescribed br ief. Add<br \/>\npunishme nt was imprisonment for two years or more, with or annexure if<br \/>\nwitho ut fine&#8217; required .<br \/>\nOn Page<br \/>\nno. . ..<br \/>\nII. Whether the application fo r &#8216;plea-bargaining&#8217; under Chapter No If yes give details<br \/>\nXXI-A of &#8216;Code of Cr iminal Procedu re&#8217; is pending in a Court or a in brief. Add<br \/>\nCourt has recorded that a &#8216;mutu ally satis fac tory disposition&#8217; of annexure if<br \/>\nsuch an app licat ion is not worked out &#8216;<br \/>\nrequ ired.<br \/>\nOn Page no . . ..<br \/>\n12. Whether the offence is one committed by an applicant for which No If yes, give<br \/>\nhe was co nvicted by a co urt of law detai ls in<br \/>\nbrief. Add<br \/>\nannexure if<br \/>\nrequi red .<br \/>\nOn Page no&#8230;.<br \/>\n27<br \/>\n\u2022<br \/>\n13. (i) Whether it is an offence in respect of which, the compounding i) YesINo If yes, give<br \/>\napp licat ion has already been rejecte d, det ails in<br \/>\n(ii) If yes, wheth er it is a case where relaxation is avai lable in the<br \/>\n(ii) Yes<br \/>\nbrief. Add<br \/>\nGuidelines.<br \/>\n[ If (i) is annexure if<br \/>\nyes ] req uired.<br \/>\nOn Page<br \/>\nno.. ..<br \/>\n14. Whether it is a case of a person who is main accu sed and where it No If yes, give<br \/>\nis proved that he has enabled others in tax evas ion such as, detail s in<br \/>\nthrough she ll companies or by prov iding accommodation entr ies brief. Add<br \/>\nin any other manner as mandated in sec . 277A of the Act annexure if<br \/>\nrequired.<br \/>\nOn Page<br \/>\nno.. ..<br \/>\n15. Whether it is an offence which has bearing on an offence rela ting No !f yes, give<br \/>\nto undisclosed foreign bank account\/as sets in any manner deta ils in<br \/>\nbrief. Add<br \/>\nannexure if<br \/>\nrequired.<br \/>\nOn Page<br \/>\nno . . . .<br \/>\n16. Whether it is an offe nce which has bearing on any offence under No If yes, give<br \/>\nthe Black Money (Undisc losed Foreign Income and Assets) and detai ls in<br \/>\nImpositio n of Tax Act, 20 15. brief. Add<br \/>\nannex ure if<br \/>\nrequired .<br \/>\nOn Page<br \/>\nno . . ..<br \/>\n17. Whether it is an offence whic h has bearing on any offence under No If yes, give<br \/>\nThe Benami Transactions (Prohibition) Act, 1988. detail s in<br \/>\nbrief. Add<br \/>\nannexure if<br \/>\nrequired.<br \/>\nOn Page<br \/>\nno. . ..<br \/>\n18. Amount of com pounding charges comp uted Rs. On Page<br \/>\nby AO\/ADIT\/DDITas per Paras l2 &#038; 13 of the Guidelines. no &#8230;&#8230;&#8230;&#8230;<br \/>\n19. The compounding charges are in accordance with Paras 12 and Yes Ifno, give<br \/>\n13 of the Guidel ines reasons.<br \/>\nOn Page no&#8230; .<br \/>\n28<br \/>\n\u2022<br \/>\n20. The factors, such as conduct of the person, nature and magnitude Yes lf no, give details<br \/>\nof the offence and facts and circumstance of the case have in brief. Add<br \/>\nbeen considered while dealing with the annexure if<br \/>\ncompounding application and in calculating compounding required.<br \/>\ncharges On Page no&#8230; .<br \/>\n21. Whether the cases of Co-accused are being considered as per YesINot If yes, give details<br \/>\nPara 13.8 Applicable in brief. Add<br \/>\nannexure if<br \/>\nrequired.<br \/>\nOn Page no&#8230; .<br \/>\n22. Any other fact relating to the person\/case relevant for No If yes, give<br \/>\ncons ideration of the Competent Authority details in<br \/>\nbrief. Add<br \/>\nannexure if<br \/>\nrequ ired.<br \/>\nOn Page<br \/>\nno&#8230;.<br \/>\nSignature:<br \/>\nName:<br \/>\nDesig nation:<br \/>\nDate :<br \/>\nRecommended by: 1. Add\\. CIT\/Jt. CIT\/Add\\. DIT\/Jt. DIT SignatureIName\/Designation\/Date<br \/>\n2. PCITIPDIT\/CIT\/DIT SignaturelNamelDesignationlDate<br \/>\n&#8220;Note: This may be given on the basis of information furnished by the a pplicant in his application for<br \/>\ncompounding or information al ready available wit h the Competent Authority for compounding<br \/>\n29<br \/>\nAnnexure 3<br \/>\n(Suggested Format)<br \/>\nPart-I<br \/>\nFormat fo r Order u\/s 279(2) of the Income-tax Act, 196 1 for Comp oun d in g of an<br \/>\nOffence as mentioned in Para II (ii) of the Guidelines issued by the CBDT vide F.No.<br \/>\n285108\/2014-IT(lnv.V) dated 14.06.2019 on Comp ound ing of Offences<br \/>\nOrde r u\/s 279(2) oflncome-tax Act, 1961<br \/>\nName of the person<br \/>\nStatus<br \/>\nOffences u\/s<br \/>\nAYs I Datel period involved in offence<br \/>\nDate of filing of complaint, if any<br \/>\nStatus of case (i.e. whether contemplatedl<br \/>\nPending in Court!Convictedl Acquitted)!<br \/>\nDate of hearing, ifany<br \/>\nDate of order<br \/>\nOrder u\/s 279(2) of the Income-ta x Act, 1961<br \/>\nI, the Principal Chief Commissioner!Chief Commissioner of Income-tax IPrincipal Director General\/Director<br \/>\nGeneral of Income-tax, in exercise of powers vested in me by virtue of the provisions ofsub-section 2 of<br \/>\nsection 279 of the Income-tax Act, 1961 hereby compound the offence(s) u1s ofthe Income -tax Act,1961<br \/>\nfor the AY.(s) I Datel period , committed by M\/s .lShri\/Ms .<br \/>\nThe Statement of the facts of the case are enclosed as Annexure &#8211; &#8216;A&#8217;<br \/>\nPlace:<br \/>\nDate:<br \/>\nSeal: Signature<br \/>\nPrincipal Chief Commissioner\/Chief<br \/>\nCommissione r of Income-tax I<br \/>\nPrincipal Director General\/Director<br \/>\nGenera l of Income-tax<br \/>\nCopy to:<br \/>\nThe Commissioner ofl ncome Taxi Director of Income Tax The<br \/>\nAssessing Officer! ADITIDDITThe<br \/>\nADITIDDIT (Prosecution)&#8211; &#8212;&#8211;<br \/>\nThe Prosecution Counsel (if the case is pending in the Court) &#8212;&#8211;The<br \/>\napplicant (By name)-<br \/>\nGuard file.<br \/>\nSignature<br \/>\nACITI ITO (Hq.)<br \/>\n0 \/0 the Pr. CCITICCITI Pr. DGIT\/DGIT<br \/>\n30<br \/>\nAnnexure 3<br \/>\n(Suggested Format)<br \/>\nPart-IT<br \/>\nForma t for O rder u\/s 279(2) of the In come-tax Act, 1961 for rejecting the Compounding of<br \/>\nan Offence as mentioned in Para 11 (ii) of the Guidelines issu ed by the CBOT vide F. No.<br \/>\n285\/08\/2014-I T(lnv.V) dated 14.06.2019 on Compou ndi ng of Offences<br \/>\nOrder u\/s 279(2) of Income-tax Act, 1961<br \/>\nName of the person<br \/>\nStatus<br \/>\nOffences u\/s<br \/>\nAYs I Datel period involved in offence<br \/>\nDate of filing of complaint, if any<br \/>\nStatus of case (i.e. whether Contemplated!<br \/>\nPending in Court! Convicted\/ Acquitted)<br \/>\nDate of hearing, if any<br \/>\nDate of order<br \/>\nOrder u\/s 279(2) of the Income-tax Act, 1961<br \/>\nI, the Principal Chief Commissioner\/Chief Commissioner of Income-taxlPrincipal Director General\/Director<br \/>\nGeneral of Income-tax, in exercise of powers vested in me by virtue ofthe provisions of sub-section 2 of<br \/>\nsection 279 of the Income-tax Act, 196 I hereby decline the prayer to compound the offence(s), u\/s ofthe<br \/>\nIncome-tax Act, 1961 for the A.Y.(s) I Date\/ period , committed by Mls.lShri \/Ms .<br \/>\nThe case was not found to be a tit case for compounding as &#8221; (mention reasons) &#8221;<br \/>\nThe Statement of the facts of the case are enclosed as Annexure &#8211; &#8216;A&#8217;<br \/>\nPlace:<br \/>\nDate:<br \/>\nSeal<br \/>\nSignature<br \/>\nPrincipal Chief Commissioner\/Chief<br \/>\nCommissioner of Income-tax I Principal<br \/>\nDirector General\/Director General of<br \/>\nIncome-tax<br \/>\nCopy to:<br \/>\nThe Commissioner of Income Taxi Director of Income Tax&#8212;&#8211;The<br \/>\nAssessing Officer\/ ADIT\/DDIT &#8212;-..<br \/>\nThe ADIT\/DDIT(Prosecution)&#8212;&#8212;&#8211;<br \/>\nThe Prosecution Counsel (if the case is pending in the Court}&#8212;&#8211;The<br \/>\napplicant (By name) &#8212;&#8212;<br \/>\nGuard file Sd\/-<br \/>\nACIT\/ ITO (Hq.)<br \/>\n0 10the Pr. CCIT\/CCITI ProDGIT\/DGIT<br \/>\n31<br \/>\nAnnexure-A<br \/>\nStatement of facts<br \/>\nThe statement of facts shou ld, inter alia, contain the following:<br \/>\n1. Detail of application filed<br \/>\nAn application for Compounding of Offences committed uls of the Income-tax<br \/>\nAct, 1961 was filed in prescribed format by Mis. IMr. IMs on .<br \/>\n2. Brieffacts<br \/>\n3.Whether complaint has been filed<br \/>\nA complaint was filed in the Court of on and the case is<br \/>\nstill pending in the court\/the Court has convicted the person who has filed an appeal against the<br \/>\nconviction order that is pending in the Court\/ the Court has acquitted the person &#038; the<br \/>\ndepartment has filed an appeal against the acquittal order that is pending in the Court or an<br \/>\nappeal against the acquittal order is contemplated.<br \/>\nOR<br \/>\nThe complaint is yet to be filed in the Court.<br \/>\n4. In case of order accepting compounding, details of payment of compounding charges by<br \/>\nthe person.<br \/>\n5. Direction to the AOI Standing Counsel to take necessary action to implement the orders at<br \/>\nthe earliest.<br \/>\n32<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>The CBDT has issued a directive dated 14th June 2019 in which it has specified the guidelines for compounding of offenses under section 279(2) of the Act. The Guidelines supercede the earlier guidelines on the subject. The Guidelines shall come into effect from 17.06.2019 and shall be applicable to all applications for compounding received on or after the aforesaid date. Applications received before 17.06.2019 shall continue to be dealt with in accordance with the Guidelines dated 23.12.2014<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/info\/download-cbdt-guidelines-for-compounding-of-offences-under-direct-tax-laws-2019\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1,7],"tags":[],"class_list":["post-13421","post","type-post","status-publish","format-standard","hentry","category-all-information","category-others"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts\/13421","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/comments?post=13421"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts\/13421\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/media?parent=13421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/categories?post=13421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/tags?post=13421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}