https://www.taxtmi.com/caselaws?id=447129 The Madras HC dismissed a writ petition challenging denial of compounding benefits under Section 279(2) of the Income Tax Act. The petitioner, previously convicted by an Economic Offences Court, sought to compound multiple grave tax offences after exhausting all legal remedies including appeals to the Tribunal. The HC held that despite prior decisions allowing compounding during pending appeals, the petitioner showed no remorse and strategically waited for conviction before applying. The Court emphasized that merely paying tax, penalty and interest does not entitle automatic compounding rights, particularly when the application was belated and filed after conviction. The HC noted that allowing compounding would send wrong signals to society and undermine the deterrent effect of tax laws. en-us Fri, 17 Nov 2023 00:00:00 +0530 Tue, 19 Dec 2023 13:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447129 The Madras HC dismissed a writ petition challenging denial of compounding benefits under Section 279(2) of the Income Tax Act. The petitioner, previously convicted by an Economic Offences Court, sought to compound multiple grave tax offences after exhausting all legal remedies including appeals to the Tribunal. The HC held that despite prior decisions allowing compounding during pending appeals, the petitioner showed no remorse and strategically waited for conviction before applying. The Court emphasized that merely paying tax, penalty and interest does not entitle automatic compounding rights, particularly when the application was belated and filed after conviction. The HC noted that allowing compounding would send wrong signals to society and undermine the deterrent effect of tax laws. Case-Laws Income Tax Fri, 17 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447129