SONAL GUM INDUSTRIES Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioners, by this application, have prayed that the order dated February 2, 1994, passed by the Assistant Director of Income -tax (Prosecution) -II, Ahmedabad, vide annexure E, calling upon petitioner No. 1 to pay Rs. 47,658 as compounding fees, be quashed and set aside. It appears from the record placed before us that for the years 1975, 1976 and 1977, the amount of tax was deducted. However, the same was not deposited in accordance with the provisions of the Income -tax Act, 1961 ('the Act', for short). Petitioner No. 1 applied by letter dated April 17, 1989 (annexure B), for compounding the offences, after the prosecution was launched under Section 276B of the Act. It appears that the Assistant Director of Income -tax (Prosecution) accepted the request and by an order dated February 2, 1994, called upon petitioner No. 1 to pay the compounding fees.

(2.) BY the present application, it is also prayed to quash and set aside the sanction granted by respondent No. 2 for filing' criminal complaints against the petitioners, the same being ultra vires, illegal and void and further directing them not to proceed with the criminal complaints pending before the Addl. Chief Metropolitan Magistrate, Ahmedabad.