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TMI Blog2023 (10) TMI 706X X X X Extracts X X X X X X X X Extracts X X X X ..... pression first occasion , as indicated in the guidelines for compounding of offences under Direct Tax Laws, 2019. Therefore, in our view, the compounding fee should have been calculated at the rate of 3%, and not at 5%. Given this position, we are inclined to set aside the impugned communication. Respondents will thus pass the necessary orders compounding the offences, in view of the fact that the entire compounding fee has been paid. - HON'BLE MR. JUSTICE RAJIV SHAKDHER AND HON'BLE MR. JUSTICE GIRISH KATHPALIA For the Petitioner Through: Mr Satyen Sethi, Advocate For the Respondents Through: Mr Puneet Rai, Sr Standing Counsel with Mr Ashvini Kumar, Ms Madhavi Shukla, Standing Counsels along with Mr Nikhil Jain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich is a category A offence, and since an application for compounding was preferred for the first time i.e., was the first occasion , the compounding fee, as per provisions of the Guidelines referred to above, should have been calculated at the rate of 3%. 6. We may note, that besides this, Mr Sethi has also submitted, that while one out of the four directors of the petitioner-company i.e., one Mr Gopal Ansal was responsible for running the affairs of the petitioner-company, the other three directors i.e., Mr Subhash Verma, Mr Suresh Kumar Gupta and Mrs Ritu Ansal were not in charge of and/or responsible for conducting the business of the petitioner-company. 6.1 We are told by Mr Sethi, that against the total compounding fee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot proceed further, which is also the mandate of Section 279 of the Act. 12. The matter requires further examination. 13. Mr Sethi says, that he would deposit an additional amount, albeit, calculated at the rate of 3% on the amount of tax in default, by taking into account the offence(s) committed by all the four directors, for the three FYs i.e., FYs 2016-17, 2017-18 and 2018-19. 14. Mr Sethi says, that this additional amount will be deposited within the next 10 days. 15. Issue notice. 15.1 Mr Puneet Rai, learned senior standing counsel, accepts notice on behalf of the respondents/revenue. 15.2 Mr Rai will revert with instructions, on whether the respondents/revenue will close their attempt at prosecuting th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2023. 7. To be noted, no counter-affidavit has been filed, as would be evident from the extract of the order dated 27.02.2023. 8. In our view, since a common application had been filed for the aforementioned FYs for the first time, it would fall within the expression first occasion , as indicated in the guidelines for compounding of offences under Direct Tax Laws, 2019. 9. Therefore, in our view, the compounding fee should have been calculated at the rate of 3%, and not at 5%. 10. Given this position, we are inclined to set aside the impugned communication dated 19.01.2023. 11. It is ordered accordingly. 12. Respondents will thus pass the necessary orders compounding the offences, in view of the fact that the entire compo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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