2023 (10) TMI 706

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....venience, the relevant parts of the order dated 27.02.2023 are set forth hereafter: "2. This writ petition is directed against the order/communication dated 19.01.2023 passed by the respondents/revenue. 2.1 Via the impugned order/communication, the application preferred by the petitioner-company for compounding of offence(s), according to Mr Satyen Sethi, who appears on behalf of the petitioner, has not been satisfactorily disposed of. 3. To be noted, the impugned order/communication vis-a-vis Financial Year (FY) 2016-17 has imposed compounding fee at the rate of 5% of the amount of tax in default. 4. Mr Sethi says, that as per the Guidelines for Compounding of Offences under Direct Tax Laws, 2019 [in sho....

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....he rate of 3%, and the other three directors are included in that calculation, certain additional amounts will have to be deposited. 8. We may note, that the charge levelled against the petitioner-company was that it failed to deposit tax collected at source. The prosecution qua the petitioner was intended to be launched vis-à-vis the said offence. It was at that stage, that the petitioner-company moved an application for compounding the offence(s). The sanction for prosecution, concededly, has already been given. However, orders qua the aforementioned directors under Section 2(35) of the Act were passed on 27.09.2019. 9. Mr Sethi, at this stage, says that an application for revocation of sanction has been filed, pu....

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....tructions are received to resist the petition, a counter-affidavit will be filed before the next date of hearing. 17. List the matter on 25.09.2023. 18. In case the additional amount towards compounding fee, as observed above, is deposited by the petitioner-company, there shall be a stay on the operation of the impugned order/communication till further directions of this Court". 2. Mr Satyen Sethi, learned counsel, who appears for the petitioner-company, informs us that the additional amount, albeit at the rate of 3% of the amount of tax in default by taking into account the offence(s) committed by all four Directors concerning the three Financial Years i.e. 2016-17, 2017-18 and 2018-19, has been deposited. 3. Mr Puneet Rai, ....