Compounding of offence u/s 276C(1) of the IT Act, 1961- Compounding Fee - Income Tax - F. No. 285/05/2015-IT (Inv. V)/489

F. No. 285/05/2015-IT (Inv. V)/489 Government of India Ministry of Finance Department of Revenue (Central Board of Direct Taxes) E-2, ARA Centre, Jhandewalan Extn. New Delhi-110055. Dated : 22.12.2016 To, The Pr. Commissioner of Income Tax (Central), Hyderabad. Sir, Sub : Compounding of offence u/s 276C(1) of the IT Act, 1961- Compounding Fee - Clarification- Request Kindly refer to your office letter F. No. CIT(C)/H/Prosecution/Compounding/2016-17 dated 9/12/2016 on the above mentioned subject. 2. ln this regard, the undersigned is directed to refer to the provisions of section 276C(1) of the Income Tax Act, 1961 which read as under: If a person willfully attempts in any manner whatsoever to evade any tax, penalty or interest chargeable or imposable under this Act, he shall, without prejudice to any penalty that may be imposable on him under any other provision of this Act, be punishable, i) in a case where the amount sought to be evaded exceeds [twenty five] hundred thousand rupees, with rigorous Imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine; ii) in any other case, with rigorous imprisonment for a team which shall not be less than three months but which may extend to (two) years and with fine . 3. The undersigned is further directed to state that from the plain reading of the section supra, it is apparent that the term sought to be evaded is defined in the section itself and accordingly the term, amount sought to be evaded refers to the amount of any tax, penalty or interest chargeable or imposable under the Act. Yours faithfully, (GURPREET SHAH SINGH) Asstt. Commissioner of Income tax (OSD) (Inv. V), CBDT, New Delhi