Compounding of offences. - Income Tax - 5251/1995

INSTRUCTION NO. 5251/1995 Dated: March 1, 1995 Section(s) Referred: 279(2) Statute: Income - Tax Act, 1961 Please refer to the above. Recently, an instance has come to the notice of the Board where an order u/s.279(2) of I.T. Act was passed by a Commissioner of Income-tax. In the past also one or two such instances have come to the notice of the Board. 2. Section 279(2) which provides for compounding of offences punishable under the I.T. Act was amended w.e.f. 1-4-89. The amended provisions provided that only the Board, CCIT or the DGIT could compound an offence. The sub-section (2) of Section 279 was further amended by Finance (No. 2) Act 1991. The amended provisions which are in operation w.e.f. 1-10-91 provide that an offence can be compounded by the Chief Commissioner or the Director General. Thus, w.e.f. 1-4-89 the Commissioner of Income-tax is no longer empowered to pass order u/s.279(2). 3. This legal position may be kept in mind by all the Chief Commissioners and Commissioners of Income-tax while dealing with requests for compounding of offences. Needless to say that the guidelines issued by the Board vide F.No. 285/161/90-IT(Inv) dated 30-9-94 for compounding of the offences may also be followed in all cases. 4. These instructions may be brought to the notice of the Commissioners of the Income-tax working under your jurisdiction. F.No. 285/90/94-IT(Inv.)/867