https://www.taxtmi.com/caselaws?id=367586 For compounding an offence under section 276C(1) of the Income-tax Act, the basic compounding fee must be computed on the tax sought to be evaded, not on the gross income added or the income sought to be evaded. The court construed the compounding guidelines in the statutory context of section 276C(1), which links punishment to the amount sought to be evaded and therefore uses the tax component as the correct base. The departmental computation was accordingly incorrect, the compounding order was set aside, and a fresh computation on the correct basis was directed, with refund of any excess already paid. en-us Mon, 17 Sep 2018 00:00:00 +0530 Sat, 22 Sep 2018 08:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=367586 For compounding an offence under section 276C(1) of the Income-tax Act, the basic compounding fee must be computed on the tax sought to be evaded, not on the gross income added or the income sought to be evaded. The court construed the compounding guidelines in the statutory context of section 276C(1), which links punishment to the amount sought to be evaded and therefore uses the tax component as the correct base. The departmental computation was accordingly incorrect, the compounding order was set aside, and a fresh computation on the correct basis was directed, with refund of any excess already paid. Case-Laws Income Tax Mon, 17 Sep 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=367586