TaxTMI 
TaxTMI 
2020 (1) TMI 1064
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....appearing for Mrs. Mauna Bhatt, the learned Senior Standing Counsel waives service of notice of rule for and on behalf of the respondents. 2. Since the issues raised in all the captioned writ-applications are the same, those were heard analogously and are being disposed of by this common judgment and order. 3. The short question raised for determination of this Court as to whether 100% of the amount sought to evaded or 100% of tax sought to be evaded is to be paid for compounding of offence under Section 276C(1) of the Income Tax Act, 1961 [for short 'The Act, 1961'], when offence pertains to willful attempt to evade tax, etc. 4. The Central Board of Direct Taxes [CBDT] has issued guidelines for compounding of offences under the Di....
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....The petitioner filed an application for compounding of offences as per the guidelines issued by the Central Board of Direct Taxes for compounding of offences under Direct Tax Laws, 2014 on 1st June 2017. The Assessing Officer intimated working of compounding fees by letter dated 8th August 2018 on the basis of amount of concealed income and communicated the approval of the Chief Commissioner of Income Tax-2, Ahmedabad for compounding fees directing the petitioner-assessee to pay the amount worked out within 60 days on receipt of the intimation. 9. The petitioner on receiving such details, vide reply dated 4th October 2018 objected the working of the compounding fees based on the amount of income evaded instead of amount of tax evaded. It....
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....ought to be evaded. 13. Having considered the submissions made by other side, it is germane to refer to the decision of this Court in the case of Supernova System (P.) Ltd. [Supra], wherein, this Court has held as under:- "9. In terms of such compounding powers, the CBDT has been issuing circulars for providing guidelines for compounding offenses under the Act. We are concerned with the latest guideline issued on 23.12.2014 issued by the CBDT. This circular contains detailed provisions and procedure for compounding offenses under the Act. 10. Para 12 of the said circular pertains to fees for compounding. In the context of section 276C(1) of the Act, para 12.2 prescribes fees for compounding as under: "12.2 Section 276C(1) ....
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....r willful attempt to evade tax, penalty or interest chargeable, provides for a more severe punishment in case the amount sought to be evaded exceeds Rs. 250,000/. For the rest, punishment prescribed is lesser. This prescription of punishments in two categories is thus linked with the amount sought to be evaded. This amount sought to be evaded is in relation with the action of a person of a willful attempt to evade tax, penalty or interest chargeable. In the prescription of punishment thus, when there is a reference to amount sought to be evaded, it must be seen in light of the willful attempt on the part of the concerned person to evade tax, penalty or interest. This provision thus, links the severity of punishment on the amount sought t....