February 2023
Section 279 (2) of the Act – Section 276B, r.w.s. 278B –compounding of offence – Application filed after conviction – guidelines for compounding offence – cannot override the provisions of the statute i.e. Section 279
By Ajay R. Singh, Advocate
21 Footcandles Film Pvt Ltd vs. Income-tax Officer – TDS – 1 & Ors
[Writ Petition No.429 of 2022
Date of order: 28th November, 2022 (Bom) (HC)]
Section 279 (2) of the Act - Section 276B, r.w.s. 278B –compounding of offence – Application filed after conviction – guidelines for compounding offence - cannot override the provisions of the statute i.e. Section 279:
The Writ Petition, filed under Article 226 of the Constitution of India, impugns the order, under the provisions of sub-section (2) of Section 279 of the Income- tax Act, 1961, dated 1st June, 2021, passed by respondent no.3- Chief Commissioner of Income Tax (TDS), Mumbai, whereby an application filed by the petitioners for compounding of an offence committed, under section 276B, r.w.s. 287B of the Income-tax Act, 1961 during the F.Y. 2009-10 relevant to the A.Y. 2010-11, was rejected.
The case of the petitioner no. 2 is that for the relevant F.Y. 2009-10, the petitioner no.1-company deducted income tax to the tune of Rs. 25,02,336/- from the salaries of its employees, under the provisions of Section 192 of the Act, but had failed to deposit the tax so deducted to the credit of the Central Government within the time prescribed under section 200 r.w.s. 204 of the Act. The petitioners claim that this situation arose due to the accumulated losses and delays in receiving tax refund from the respo
