SOFITEL REALTY LLP Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) Petitioner no.1 is a Limited Liability Partnership firm. Petitioner nos.2 and 3 are partners of petitioner no.1. For the period of assessment year 2009-2010, petitioner no.1 for various reasons did not deposit the TDS amount that it had deducted with the income tax authorities. Petitioner no.1 deposited those TDS amounts on or about 23/3/2010 beyond the time provided for deposit. This was before petitioners even received a show cause notice from the department. There is no outstanding on amount of TDS.

(2.) Petitioners received the show cause notice dtd. 30/11/2011 calling upon petitioners to show cause as to why prosecution against them be not lodged for offence under Sec. 276B read with Sec. 278B of the Income Tax Act, 1961 (the Act). On 26/3/2012, petitioners filed a compounding application dtd. 5/3/2012 (first application) in the prescribed format. On 25/2/2013, hearing notice was issued to petitioners and petitioners were given a personal hearing. Chief Commissioner of Income Tax, i.e., respondent no.3 declined the prayer to compound the offence. This was because on 25/2/2013, during the personal hearing, petitioners' representative had agreed to pay the compounding fees of Rs. 7,39,984.00 as calculated by CIT (TDS) Mumbai by 15/3/2013 but petitioners failed to deposit the compounding fees. The break up of Rs. 7,39,984.00 is as under:

(3.) On 22/4/2013, petitioner requested for time of one more month for payment and extension was granted up to 10/5/2013. No payment was however made. Therefore, the department sent a reminder on 5 thJuly 2013 calling upon petitioner to pay the compounding fees by 12/7/2013. Petitioner did not respond or deposit the said compounding fees. In view thereof, petitioner's application dtd. 5/3/2012 came to be rejected.