https://www.taxtmi.com/caselaws?id=191646 In company law compounding, the authority must apply the correct statutory penalty regime for the relevant default period and assess consistency, proportionality, gravity, duration, and comparable cases before fixing the amount. A materially higher compounding amount for similarly placed defaults may be interfered with where no adequate justification exists, while a higher amount may still stand for prolonged or repeated defaults if it remains reasonable. Where the order applied an erroneous penalty structure across accounting years governed by different Companies Acts, it could not be sustained and the matter was remitted for fresh consideration under the correct framework. en-us Tue, 28 Feb 2017 00:00:00 +0530 Mon, 15 Apr 2019 11:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=191646 In company law compounding, the authority must apply the correct statutory penalty regime for the relevant default period and assess consistency, proportionality, gravity, duration, and comparable cases before fixing the amount. A materially higher compounding amount for similarly placed defaults may be interfered with where no adequate justification exists, while a higher amount may still stand for prolonged or repeated defaults if it remains reasonable. Where the order applied an erroneous penalty structure across accounting years governed by different Companies Acts, it could not be sustained and the matter was remitted for fresh consideration under the correct framework. Case-Laws Companies Law Tue, 28 Feb 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=191646