Compounding of tax offences requires authority consent; no enforceable right exists to compel withdrawal of prosecution.

Compounding of offences under the Income-tax Act is not a unilateral entitlement of the accused and requires the consent of the competent authority. A person seeking compounding cannot insist on a bilateral settlement as of right, and a writ of mandamus cannot be used to compel compounding or withdrawal of prosecution. Refusal to grant a personal hearing did not warrant interference where the authority considered the representation on merits and found the case unfit for withdrawal. The challenge therefore failed and the rejection of compounding and withdrawal of prosecution was upheld.

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Issues: Whether the refusal to compound the offences or withdraw the prosecution was vitiated by violation of natural justice and whether the petitioner had a legal right to insist on compounding and withdrawal.

Analysis: The request for compounding under the Income-tax Act is not a unilateral entitlement of the accused. Compounding can be done only with the consent of the competent authority, and a person seeking compounding cannot insist on a bilateral settlement as of right. In the circumstances, refusal to grant a personal hearing did not justify interference where the authority had considered the representation on merits and found the case not fit for withdrawal of prosecution. A writ of mandamus cannot be issued to compel the complainant or authority to agree to compounding or settlement.

Conclusion: The rejection of the request for compounding or withdrawal of prosecution was upheld and the challenge failed.

Final Conclusion: The writ petition was dismissed because the petitioner had no enforceable right to compel compounding or withdrawal, and the impugned order disclosed no legal infirmity.

Ratio Decidendi: Compounding of an offence is not a matter of unilateral right and can take effect only with the consent of the competent authority; therefore, mandamus cannot be issued to compel compounding or withdrawal of prosecution.

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