S M KABEER Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioner is challenging the prosecution initiated by the Income-tax Department for delayed payment under section 276B of the Income-tax Act, 1961. THE case of the petitioner is that a partner of the firm cannot be made liable without considering the contravention of the provisions and that there is no contravention. It is further submitted that they have compounded the offence under section 279(2) of the Income-tax Act. Section 279(2) of the Act contemplates "either before or after the institution of proceedings, an offence initiated for contravention of the Act may be compounded by the Chief Commissioner or the Director-General". Even now, pendency of the proceedings before the trial court is no bar for compounding. He may do so, but the manner how he contravened is a matter for evidence. Whether the partners are liable to be prosecuted is a question of fact. This court need not venture to decide that question under inherent powers. It is also submitted that the petitioner has moved the Commissioner for this compounding. If it is so, he can work out his remedy and produce such an order before the trial court at the appropriate stage. I see no ground to quash the proceedings. Hence, this petition is dismissed.

(2.) "In view of the disposal of the main petition, this petition is dismissed." (Criminal Miscellaneous Petition No. 11446 of 1990).