2015 (5) TMI 589

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....by the petitioner of an amount of Rs. 1.04 crores had been deposited by it into the Central Government Account after the due date prescribed under the Income Tax Act, 1961 (for short 'the Act'). The petitioner was called upon to show cause why prosecution proceedings under section 276B of the Act be not launched against it. 3. We see no reason to interfere at this stage. The petitioner ought to reply to the notice. There are several issues which would require consideration while adjudicating the notice. The respondent would have to consider various factual aspects such as the dates on which the tax was deducted at source and the dates on which the same was paid into the Central Government account. If there is a delay as there probably is....

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....C, Section 276-CC, Section 276-D, Section 277 [, Section 277-A] or Section 278 except with the previous sanction of the Commissioner or Commissioner (Appeals) or the appropriate authority: Provided that the Chief Commissioner or, as the case may be, Director-General may issue such instructions or directions to the aforesaid income tax authorities as he may deem fit for institution of proceedings under this subsection. Explanation.-For the purposes of this section, "appropriate authority" shall have the same meaning as in clause (c) of Section 269-UA.] (1-A) ............. [(2) Any offence under this Chapter may, either before or after the institution of proceedings, be compounded by the Chief Commissioner or Director-General.]" 5....

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....at any offence under the Chapter, which includes one under section 276B, may be compounded by the Chief Commissioner or a Director General "before or after institution of proceedings". The authority to compound the offence before institution of the proceedings makes it abundantly clear that it is left to the discretion of the authorities concerned whether or not to institute prosecution proceedings in respect of an offence under section 276B of the Act. If the offence is compounded before institution of the proceedings there would be no question thereafter of instituting proceedings for a failure referred to in section 276B of the Act. 8. Even assuming, therefore, that there was an offence by the petitioner as alleged in the show cause n....