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2022 (6) TMI 898 - HC - Income TaxOffence u/s 276CC - sanction u/s 279(1) for launching prosecution u/s 276CC - offence alleged is compoundable or not? - Evasion of tax - concealment of taxable income - petitioners submits that since the offence is compoundable, if one more opportunity is given to them they would compound the offence and come out the prosecution - HELD THAT:- The opportunity given was only once by way of show cause notice seeking explanation from the hands of the petitioners. Jurisdictional issue is also raised by the learned counsel but would restrict his submissions seeking one more opportunity to compound. Department would not refute the position that notices are issued while according sanction for prosecution in respect of offences punishable under Section 276CC. The learned counsel would, however, accept that one more opportunity could be given to the petitioners to compound the offence in the light of no further proceedings have happened as interim order is operating in the case at hand throughout the pendency of these proceedings. In the light of what is quoted in the order of sanction we deem it appropriate to accept the submission of the learned counsel appearing for the petitioners more so on two grounds –(i) since the offence alleged is compoundable and an opportunity ought to have been granted by the respondents/ department and (ii) though an opportunity is granted, the learned counsel for the petitioner submits, at that point in time the petitioner in Writ Petition No.112881 of 2019 was hospitalised and others were taking care of him - if one more opportunity is granted and compounding is permitted no prejudice would be caused to the Department. The other ground is that the interim order staying all further proceedings pursuant to the private complaint registered is operating in the cases at hand throughout and the prosecution has not proceeded further except cognizance being taken on the registration of private complaint by the respondents. Order - Writ petitions are allowed in part subject to the assessees /petitioners filing applications for compounding within 6 weeks from the date of receipt of a copy of this order.The respondents shall pass appropriate order accepting or declining to accept such compounding within a reasonable time thereafter.
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