2025 (5) TMI 1424

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....the Bharatiya Nagarik Suraksha Sanhita, 2023 with a prayer to quash and set aside the order dated 10.08.2022 passed by the learned Special Judge, Economic Offences, Ranchi in Economic Offence Case No. 14 of 2018 whereby and where under the learned Special Judge has taken cognizance of the offence punishable under Section 276B read with Section 278B of the Income Tax Act, 1961 against the petitioners. 3. The brief facts of the case is that the petitioner No. 2 being the partner and the person responsible for the acts of the petitioner No. 1- partnership firm, has failed to pay to the credit of the Central Government, the T.D.S. amount deducted by him, to the tune of Rs. 21,72,670/- by the end of the month; after deducting such tax at sour....

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....arned counsel for the opposite party No. 2 fairly submits that the petitioners have deposited the said deducted T.D.S. amount of Rs. 21,72,670/- with stipulated interest thereon, on 17.09.2014 after a delay of less than five months from the due date of the deposit. It is also fairly submitted by the learned counsel for the opposite party No. 2 that after deposit of the said amount, this case being Economic Offence Case No. 14 of 2018 has been instituted on 13.04.2018. Though, it is fairly submitted by the learned counsel for the opposite party No. 2 that the Principal Chief Commissioner or Chief Commissioner or Principal Director General or a Director General of Income Tax Act has been vested with the power of compounding any offence either....

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.... the offence is required to be compounded; instead of instituting a complaint and thereby harassing the person who has deposited the amount with stipulated interest before filing of the complaint and wasting the precious time of the courts as well as the officers concerned of the Income Tax Department. 7. The verbatim of Section 279 (2) of the Income Tax Act, 1961 makes it crystal clear that the Principal Chief Commissioner or Chief Commissioner or Principal Director General or a Director General of Income Tax Act may also suo motu exercise their power of compounding the offence. The instructions to the subordinate authorities in terms of Section 119 of the Income Tax Act, 1961 by the Central Board of Direct Tax, is obviously for the pur....