ANIL BATRA Vs. CHIEF COMMISSIIONER OF INCOME TAX

JUDGEMENT

(1.) The Petitioner is the Managing Director of M/s Anil Batra and Associates Private Limited. During the AY 1982-83, tax deducted at source by the company was deposited beyond the period prescribed by law. Similarly, during AY 1983-84 and 1984-85 also, the company deposited the tax beyond the period prescribed by law. That being so, the Income Tax Department filed complaints dated 27.03.1986 against the Company & Directors under section 276B of Income Tax Act before the Court of CMM for all the three Assessment Years. The complaint for the Assessment Year 1982-83 is still at trial stage. As regards the complaints for the years 1983-84 and 1984-85, the Ld. ACMM awarded simple imprisonment of three months for the two Directors of the company and a fine of 7,000/- on the company and its two directors. Against this order, the Department has filed a revision petition for enhancement of sentence, and the petitioner has filed appeal against the conviction, both of which are pending before the Addl. Session s Judge, Delhi.

(2.) On 31.05.1986, (two months after the complaint was filed by the Income Tax Department) the petitioner moved an application before the department for compounding of offence under section 276B, which was rejected by the CBDT vide letter dated 16.01.1987.

(3.) On 29.07.2003, the CBDT issued a Circular whereby Guidelines for Compounding were reviewed in the light of past experiences and future needs. The petitioner received a letter dated 25.09.2003 and copy of guidelines. The petitioner replied the same vide letter dated 29.09.2003, expressing his willingness to compound the offence and requesting the Department to communicate the amount of compounding fees so that the same could be deposited at the earliest. The petitioner, however, received no reply from the department in this regard.