HC held that Section 279(2) of Income Tax Act, 1961 empowers ...

Tax Authorities Granted Discretionary Power to Compound Section 276B Offenses Without Strict Procedural Constraints

May 21, 2025

Case Laws Income Tax HC

HC held that Section 279(2) of Income Tax Act, 1961 empowers Principal Chief Commissioner or Chief Commissioner to suo motu compound offenses under Section 276B. The court found that despite prescribed application forms, authorities retain discretionary power to compound offenses, particularly when defaulted tax deposit with interest occurs prior to complaint filing. Given the significant time lapse between tax deposit and criminal proceedings, the court determined continuation of criminal proceedings would constitute abuse of legal process, thereby allowing petitioner's prayer and effectively terminating the criminal case.

View Source

← Previous Next →

HC held that Section 279(2) of Income Tax Act, 1961 empowers ...

Tax Authorities Granted Discretionary Power to Compound Section 276B Offenses Without Strict Procedural Constraints

May 21, 2025

Case Laws Income Tax HC

You may also like:

HC upheld the jurisdiction of the Income Tax Officer (ACIT/DCIT) to issue notice u/s 143(2), rejecting contentions challenging the authority's competence. The court...

Extension of the date for filing the income tax returns - While it is true that the powers under section 119 of the Act are discretionary in nature and it is for the...

Grant of Bail - allegation of bogus input tax credit - For the purpose of granting or refusing bail there is no classification of the offences except the ban under...

Validity of the order 278(2) - compounding of offence u/s 279(2) - Income Tax Authorities have the power to compound the offence either before or after the institution...

Seeking grant of anticipatory bail - fraudulent availment of inadmissible Input Tax Credit (ITC) - bailable offence or not - Section 132 of the Act lists 12 offences...

HC upheld the Tribunal's discretionary power in reducing pre-deposit penalty to 20% under Section 19(1)'s second proviso. The court affirmed that when legislative...

Ex post facto approval granted to a respondent for foreign investment violated principles of natural justice. A committee was constituted to examine rival contentions,...

CIRP - Reimbursement of Compounding fees - Who is responsible for offence or compounding of offence under the Income Tax Act which was committed much before the...

Seeking grant of regular bail - the High court noted the absence of a predicate offense or ongoing investigation related to a scheduled offense, aligning with the...

Petitioners accused of offences u/ss 276C(1) r.w.s. 277 of the Income Tax Act, 1961 for evading capital gains tax by showing only part sale consideration in sale deed...

Seeking grant of Bail - tax evasion - sham companies - offence u/s 132 - It is not disputed by the department that if the tax evasion of the applicant is less than Rs.5...

HC upheld constitutional validity of service tax provisions under Finance Act 1994 sub-clauses (zzzzv) & (zzzzw) of clause 105, Sec. 65. Parliament's authority to...

The court held that the competent authorities under the Prevention of Money Laundering Act (PMLA) cannot be restrained from exercising their statutory powers, even if...

GST Authorities invoked penal provisions under Indian Penal Code against the petitioner without invoking penal provisions of GST Act, despite the alleged offences being...

Validity of order of passed by the Revisional authority - The respondent authorities acting as quasi judiciary authority by invoking the power under statute are expected...

Quick Updates: