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TMI Blog2022 (5) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... the same person comes forward for compounding of another offence through any subsequent application, the applicable rate will be five per cent instead of three per cent. This Court is also of the view that the expression after compounding of the said offence means when the offence has been compounded, meaning thereby, not only the stage after the compounding order has been passed but also after the conditions stipulated in the said order have been complied with like payments. In fact, there is a rationale behind imposing a higher rate for subsequent offences as the respondents want to incentivize compliance and want the public to deduct TDS and pay to the Government. Since, in the present case, the petitioners company is a repeat offe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Zoheb Hossain, Sr. Standing Counsel with Mr. Vipul Agarwal and Mr. Parth Semwal, Advocates. O R D E R Present writ petitions have been filed challenging the orders dated 11 th February, 2022 passed by the Respondent No.1, Chief Commissioner of Income Tax (TDS) and the Orders dated 31st July, 2017 under Section 2 (35) of the Income Tax Act, 1961 (for short Act ) pertaining to the Financial Years 2013-14, 2014-15 and 2015-16 passed by the Respondent No.2, Assistant Commissioner of Income Tax, Circle 75 (1), Delhi. Mr.Ramesh Singh, learned senior counsel for the Petitioners states that Respondent No.1 vide impugned order has compounded the offences pertaining to late deposit of Tax Deducted at Source (TDS) committed by the Pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act and, therefore, the only person who was in charge of and responsible to Petitioner No.1 Company in terms of Section 278B of the Act. Learned senior counsel for the petitioners emphasises that the impugned compounding order pertaining to the Financial Years 2013-14, 2014-15 and 2015-16 is completely at variance with the compounding order for the Financial Year 2012-13 thereby making the impugned order arbitrary and unsustainable. Per contra, Mr. Zoheb Hossain, learned counsel for the respondents revenue has drawn this Court s attention to Clause 12.1 of the Guidelines for Compounding of Offences under Direct Tax Laws, 2014 issued by the Department of Revenue, Central Board of Direct Taxes, Ministry of Finance, Government of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... right. It is for the law and authorities to determine as to what kind of offences should be compounded, if at all, and under what conditions. (See: Vikram Singh vs. Union of India Ors. (2018) 401 ITR 307 ) This Court is of the opinion that the guidelines issued by the CBDT clearly stipulate that after compounding of the first offence, if the same person comes forward for compounding of another offence through any subsequent application, the applicable rate will be five per cent instead of three per cent. This Court is also of the view that the expression after compounding of the said offence means when the offence has been compounded, meaning thereby, not only the stage after the compounding order has been passed but also after t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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