TaxTMI 
TaxTMI 
2026 (9) TMI 618
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....Tax (TDS), Mumbai ("Respondent No. 1"), and the Order dated 22nd May 2026 disposing of the Petitioners' objections, whereby the Respondents have demanded compounding charges of Rs. 2,48,37,482/- in respect of the alleged offence under Section 276B read with Section 278B of the Income Tax Act, 1961 (for short "IT Act") for A.Y. 2022-23, by applying enhanced compounding charges of 1.5 times of the normal charges. 3. Mr. Devendra Jain, the learned Counsel appearing on behalf of the Petitioners, has contended that on 23rd July 2024, summons under Section 61 of the Code of Criminal Procedure/Section 63 of the Bharatiya Nagarik Suraksha Sanhita, 2023 came to be issued and were served on the Petitioners on 1st October 2024 by the Additional....
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.... amount calculated. Hence, he submits that the computation of the 12- month period cannot be reckoned from the date of filing of the complaint but from the date of service of the complaint. 5. Per contra, Mr. Yogeshwar Bhate, the learned Counsel for the Respondent, relying upon an affidavit dated 17th August 2026 by one Mrs. Bidisha Chintey [DCIT (OSD) - TDS, Circle-2(3), Mumbai], submitted that the requirement mandating service of a copy of the prosecution complaint upon each accused within fifteen days of filing of the Complaint, was introduced for the first time under the "2024 Guidelines". As on 10th July 2023 [when the Complaint was filed], Guidelines for Compounding Offences, 2022 (hereinafter referred to as the "2022 Guidelines") ....
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....re either filed after the date of issuance of these guidelines or were already filed earlier but had not been disposed." Therefore, the contention of the Respondents that they were under no obligation to serve the complaint prior to "2024 Guidelines" is not tenable. Even otherwise, if there are two different levels of compounding charges depending upon the time of application, equity demands that the complaint is served immediately upon the accused. Paragraph 9.6 of the "2024 Guidelines" states that "The complainant shall serve a copy of the prosecution complaint to each accused within 15 days of filing complaint to allow prompt filing of compounding application". Thus, paragraph 9.6 of the "2024 Guidelines" expressly recognises the nece....