TMI Blog2016 (9) TMI 209X X X X Extracts X X X X X X X X Extracts X X X X ..... lause 4.4 commences with a non obstante Clause. Therefore, the competent authority is entitled to examine the merits of each matter and to take a decision as to whether the facts make out a case for compounding even in cases where there is a conviction by a Court of law. Thus the guidelines did not place any fetters on the power of the competent authority to examine cases for compounding. However, this cannot be an universal yardstick and these observations are made by this court considering the peculiar facts and circumstances of the case as pointed out earlier. The petitioner is a senior citizen aged more than 70 years, she has lost her husband and she lost her son and she is the sole proprietrix of the small firm dealing in Electrical and Electronic Appliances. Thus considering the overall factual position, the competent authority, namely, the Chief Commissioner, Income Tax Department, Chennai should consider the petitioners case taking note of the peculiar facts and take a decision on merits uninfluenced by any observations or findings rendered by the authorities on an application moved by the petitioner before the Hon'ble Finance Minister. The above direction shall be compl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs of para 7.2 of the guidelines dated 16.05.2008 for compounding of offences. The reasons for holding that the petitioner's case is not a deserving case are not mentioned in the impugned order not furnished to the petitioner. From the counter affidavit filed on behalf of the respondents, it is clear as to what weighed in the mind of the authority is the conviction of the petitioner by the criminal court. 4. The learned Senior Standing Counsel appearing for the respondents pointed out that Clause 4 of the guidelines dated 16.05.2008 stipulates the eligibility conditions for consideration of a case for compounding and in terms of Clause 4.4 (f), if the order of conviction has been passed by the court, then the case cannot be compounded. 5. The issue as to how the the power of compounding of offences should be exercised had come up for consideration before the Hon'ble Division Bench of this court in an appeal filed by the Revenue in the case of Chairman, Central Board of Direct Taxes and others vs. Umayal Ramanathan reported in (2009) 313 ITR 59 (Mad). In the said case also there was a conviction of the assessee by the Criminal Court and revision petition challenging th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er this Chapter may either before or after the institution of proceedings, be compounded by the Chief Commissioner or a Director General. The term 'proceedings' is not defined in the Income Tax Act, 1961. The term 'proceedings' is a term of wide amplitude and comprehensive and generally speaking means a prescribed course of action for enforcing a legal right. It is not a technical expression with a definite meaning attached to it, but one the ambit of whose meaning would be governed by statute. In this context, it is useful to refer to the below mentioned decisions of the Honourable Supreme Court. i) Babu Lal vs. M/s. Hazari Lal Kishori Lal and others, AIR 1982 SC 818, 824, wherein in Paragraph 17, it was held thus:- 17.The word 'proceeding' is not defined in the Act. Shorter Oxford Dictionary defines it as carrying of an action at law, a legal action or process; any act done by authority of a Court of law; any step taken in a cause by either party. The term 'proceeding' is a very comprehensive term and generally speaking means a prescribed course of action for enforcing a legal right. It is not a technical expression with a definite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said revision, the appellants have filed Crl.M.P. No. 984 of 2000 in Crl.R.C. No. 588 of 1996 and obtained leave from the Court to consider it. While so, the appellants have refused to exercise such power in the case on hand by misinterpreting Section 279 (2) of the Act, which is unfair. The learned single Judge considered the above said facts and rightly set aside the order passed by the third appellant, hence, the writ appeal is dismissed. No Costs. Consequently, connected W.A.M.P. No. 540 of 2003 is closed. In view of the fact that the respondent is aged about 83 years, who has filed the petition for compounding as early as on 09.04.2001, which was rejected by the third appellant on 02.08.2002, to meet the ends of justice, it is warranted to direct the parties as follows:- i) The respondent is permitted to pay the amount demanded by the appellants for compounding of the offence within a period of four weeks from the date of receipt of a copy of this judgment ii) On such payment, the appellants are directed to receive it, compound the offence and inform the same to the Principal Sessions Judge, Chennai where the appeal in C.A. No. 250 of 1998 preferred by the res ..... X X X X Extracts X X X X X X X X Extracts X X X X
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