1998 (10) TMI 3 - SC - Income Tax

Sub-s. (2) of s. 279 is a provision which enables the CCIT/Director General to compound any offence either before or after the institution of proceeding. There is no warrant in interpreting this sub-section to mean that before any prosecution, a SCN should be given - The enabling provision cannot give a right to a party to insist on the Chief CIT/Director General to make an offer of compounding before prosecution - trial Court is directed to proceed with the case in accordance will law

Summary

The Supreme Court allowed the appeal, setting aside the High Court's decision. The respondent's application under s. 482 was dismissed, and the trial court was directed to proceed with the case expeditiously. The High Court's conclusion that no penal action could be taken against the respondent was found to be without legal basis.