9911796707
TMI Blog2009 (3) TMI 609X X X X Extracts X X X X X X X X Extracts X X X X ..... cularly when conviction and sentence against the present petitioners had already been passed by the Chief Judicial Magistrate does not arise - Decided in the favour of assessee - 14447 of 2008 - - - Dated:- 16-3-2009 - KUMAR M. M., BHALLA H. S., JJ. JUDGMENT H. S. Bhalla J.- The petitioners have knocked at the door of this court by filing a writ petition praying for issuance of a writ in the nature of certiorari for quashing the impugned order dated June 5, 2008 (annexure P-13) passed by the Commissioner of Income-tax, Ludhiana (respondent No. 1) by virtue of which, the application moved by the petitioners for compounding of offences, was dismissed. 2. The facts required to be noticed for the disposal of the petition are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dhar (respondent No. 2) against all the partners of the petitioner-firm alleging therein that they deliberately failed to make payment of the tax under section 140A of the Act. The petitioner-firm also filed an application before the Chief Commissioner of Income-tax, Chandigarh, for withdrawal of the criminal proceedings filed by the Department and that application was also dismissed and ultimately, the petitioner-firm moved an application for compounding the offences after passing of order dated August 14, 2006 by the Chief Judicial Magistrate, Jalandhar, convicting and sentencing the present petitioners to undergo rigorous imprisonment for one year each and to pay a fine of Rs. 500 each under sections 276C(2) and 278B of the Act. Finally, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing. As the assessee has already been convicted, there remains no ground for compounding of offence. Even the latest CBDT guidelines dated May 16, 2008 on compounding applicable from June 1, 2008 provided that compounding cannot be done when the conviction order has been passed by the court. Accordingly, the offence of the assessee, does not qualify for being compounded. The application has thus been rejected by the Chief Commissioner of Income-tax, Ludhiana." 7. The only point that arises for consideration before this court is as to whether the matter can be compounded after an order of conviction and sentence was passed against the present petitioners by a criminal court, if so, its effect ? 8. There is no denying the fact that pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounded either before or after the institution of the proceedings as embodied in section 279(2) of the Act, which for facility of reference, is required to be reproduced here in below : "279. (2) Any offence under this Chapter may, either before or after the institution of proceedings, be compounded by the Chief Commissioner or a Director-General." 11. In the instant case, the application moved for compounding of offence before the Chief Commissioner of Income-tax, Ludhiana, is dated February 16, 2008, which was rejected through the impugned order dated June 5, 2008 (annexure P-13) is an afterthought, which fact is clearly evident from the order dated August 14, 2006 whereby the present petitioners were convicted and sentenced by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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