9911796707
TMI Blog2025 (3) TMI 357X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Act, 1961, dismissing the petitioner's application for compounding the offence. 4. On perusing the impugned order, we find that the Chief Commissioner has dismissed this application on the sole ground that it was filed beyond 36 months from the date of filing of the complaint against the petitioners. The Chief Commissioner has relied upon paragraph 9.1 of CBDT guidelines dated 16 November 2022 for compounding offences under the Income Tax Act 1961. 5. Paragraph 9 of the CBDT guidelines dated 16 September 2022 reads as follows: 9. Relaxation of time 9.1 The restrictions imposed in Para 7(ii) of these Guidelines for compounding of an offence in a deserving case may be relaxed with the approval of the Pr. Chief Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that even where no limitation is prescribed by the State, the application has to be filed within a reasonable period. She submits that the guidelines only specified what would be reasonable period in the given case. Further, she referred to the decision of the Hon'ble Supreme Court in the case of Vinubhai Mohanlal Dobaria Vs Chief Commissioner of Income Tax & Anr. Civil Appeal No. 1977 of 2025 decided on 7 February 2025 and submitted that the CBDT guidelines of 2014 were upheld by the Hon'ble Supreme court, including, the paragraph which has prescribed limitation period to file application for compounding. 8. She emphasized on paragraph 79 of this decision. Para 79 reads as follows: A plain reading of the 2014 guidelin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jection is entirely premised on the notion that the competent authority had no jurisdiction to entertain a compounding application because it was made beyond 36 months. Such an approach is inconsistent with the rulings of this Court, Madras High Court and the Hon'ble Supreme Court ruling in the case of Vinubhai Dobaria (Supra) relied upon by the learned counsel for the revenue. 11. On the above short ground, we set aside the impugned order dated 17 January 2024 and direct the Chief Commissioner to reconsider the petitioner's application for compounding in the light of observations made by the Hon'ble Supreme Court in Vinubhai Dobaria (Supra). This means that the Chief Commissioner will have to consider all facts and circumstanc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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