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2023 (10) TMI 706 - DELHI HIGH COURTCompounding of offence(s) - determination of compounding fee - first occasion - 5% or 3% of the amount of tax in default - petitioner-company, informs us that the additional amount, albeit at the rate of 3% of the amount of tax in default by taking into account the offence(s) committed by all four Directors concerning the three Financial Years i.e. 2016-17, 2017-18 and 2018-19, has been deposited. HELD THAT:- Since a common application had been filed for the aforementioned FYs for the first time, it would fall within the expression “first occasion”, as indicated in the guidelines for compounding of offences under Direct Tax Laws, 2019. Therefore, in our view, the compounding fee should have been calculated at the rate of 3%, and not at 5%. Given this position, we are inclined to set aside the impugned communication. Respondents will thus pass the necessary orders compounding the offences, in view of the fact that the entire compounding fee has been paid.
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