TMI Blog2000 (11) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... to issue orders, instructions or directions under this Act shall include and shall be deemed always to have included the power to issue instructions or directions (including instructions or directions to obtain the previous approval of the Board) to other income-tax authorities for the proper composition of the offences under that section. The authority to whom the application to compound was made had sought the prior approval of the Central Board after obtaining the willingness of the petitioner to pay the compounding fee. Such approval apparently was not given by the Central Board. By the impugned communication, the petitioner was informed that the compounding petition dated October 23, 1997, filed by the petitioner before the Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a hearing before the final order was made on the application. The grievance now expressed by the petitioner's counsel is not that the Commissioner did not give the opportunity, but that the opportunity was not given by the Central Board. There was no prayer in the petition seeking such opportunity of being heard before the Central Board. It is difficult to accept the submission made that a duty to hear should be read into under section 279(2) and that the obligation to hear should be cast upon the Central Board of Direct Taxes. Normally the consequence of failure to abide by the law, is the imposition of the penalty provided for under the law. One of the ways in which the authority can proceed against the assessee who has violated the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he law to permit compounding as a matter of course but that the compounding would be permitted only where the Chief Commissioner or the Director-General and also the Central Board are of the view that the facts and circumstances of the case are such that the compounding may be permitted. The facts and circumstances of the given case are required to be set out by the person who invokes the exercise of the power under section 279(2). For the purpose of explaining his case more fully he may seek a hearing before the Chief Commissioner, but, it is difficult to accept the claim that he would also have a right to be heard by the Central Board which is required to consider the materials placed before it by the Chief Commissioner and then decide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee is not granted the relief sought in respect of the matters even by the petitioner's revision petitions. It was also noticed by the court that section 237 of the Act embodies a very salutary principle that the right of the Revenue to receive and collect tax under the Act is limited to what is properly due and payable as tax and that the amounts collected in excess are not to be treated as tax and retained by the State. The court further observed that the power vested in the authority is required to be exercised consistently with the requirements of the Act and in the manner which will advance the purpose of the provision under which the power is vested. The observations made by me in that case are not of much assistance to the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
