Offence compounded u/s 279(2) on payment of certain composition fee. - Income Tax - 1288/CBDT

INSTRUCTION NO. 1288/CBDT Dated : October 13, 1979 Section(s) Referred: 279(2) Statute: Income - Tax Act, 1961 Attention is invited to the provisions of section 279(2) of the Income-tax Act, 1961 whereunder the Commissioner of Income Tax may compound any offence under the Income-tax Act at any time either before or after the institution of proceedings therefor. A case has recently come to the notice of the Board where the concerned Commissioner of Income-tax ordered an offence to be compounded under section 279(2) on payment of a certain composition fee. As the assessee refused to pay the composition fee determined in the order under section 279(2), avoidable complications arose. 2. The matter has been considered by the Board. In order to avoid similar complication in future the Commissioners of Income-tax are advised that no order compounding an offence should be passed unless the assessee concerned agrees to the proposed composition fee and makes satisfactory arrangements for the payment thereof.