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2022 (11) TMI 249 - MADRAS HIGH COURTCompounding of offences u/s 279 - liberalisation of policy of the CBDT- applications for compounding of non-technical offences - imprisonment for less than 2 years was previously non-compoundable - case of the Appellant that the order passed by the Respondent is contrary to the guide lines issued by the Central Board of Direct Taxes - It is contended that, impugned order has been passed by the said authority without constituting a proper quorum to adjudicate compounding application and as per the above guidelines of the CBDT stated above, all the applications for compounding of non-technical offences[which includes 276C(1) should be decided by the Committee consisting of (i) CCIT (CCA), (ii) DGIT (Inv.) and CCIT/DGIT having jurisdiction over the case. HELD THAT:- There is a liberalisation over a period of time. Infact, as per the latest press release dated 17.09.2022, the scope of eligibility for compounding of cases has been relaxed whereby case of an applicant who has been convicted with imprisonment for less than 2 years being previously non-compoundable, has now been made compoundable and discretion has been vested with the competent authority to compound offence. The Appellant is now aged about 76 years. Though the Appellant has shown complicity in evading tax and also been subjected to penalty, no useful purpose would be served by prosecuting the Appellant at this distant of time because she took advantage of the legal remedy available under law. See case of K.M.Mammen Vs. Principal Commissioner of Income Tax [2019 (9) TMI 59 - MADRAS HIGH COURT]. The press release dated 17.09.2022 of the Government and the revised guide lines for compounding of offence dated 16.09.2022 allows scope for compounding of offences. There is liberalisation. We are therefore inclined to interfere by setting aside the Impugned Order of the learned Single Judge in W.P.No.906 of 2018 dated 24.01.2020 and allow the case of the Appellant for compounding of the offences. Accordingly, this Writ Appeal is allowed by setting aside the order of the learned Single Judge and the matter is remanded back to the Respondents to suitably demand the compounding fee payable by the Appellant in terms of revised guidelines for compounding of offence dated 16.09.2022 read with press release dated 17.09.2022. The above exercise shall be carried out within a period of six weeks from the date of receipt of a copy of this order and on such demand being made, the Appellant shall pay the amount to the Revenue
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