RAMESH JAIN Vs. UNION OF INDIA

JUDGEMENT

(1.) Petitioners have filed the present petition challenging the validity of the order dtd. 10/12/2021 passed under Sec. 278(2) of the Income Tax Act, 1961 (hereinafter referred to as 'IT Act,1961'') whereby the request of the petitioners for compounding the offence has been turned down.

(2.) Vide assessment order dtd. 21/12/2008, the Assessment Officer assessed the income of the company Rs.4,63,140.00 for the assessment year 2006-2007 and accordingly raised demand of Rs.2,07,338.00 with a fine of Rs.3,50,000.00. Thereafter, respondent No.1 filed a complaint on 28/3/2012 before JMFC, Indore for prosecution under Sec. 276 C (1) (i) of the IT Act, 1961. According to the petitioners they have deposited the tax as well as penalty on 22/3/2011, 8/8/2012 and 1/6/2013. Vide judgment dtd. 4/10/2019 passed by the learned Special Judicial Magistrate (CBI and Economic Offences) the petitioners have been convicted under Sec. 276 C (1) (i) of the Income Tax Act, 1961 and sentenced with 6 months S.I. and a fine of Rs.5000.00 and in default of payment of fine additional simple imprisonment for 15 days.

(3.) Being aggrieved by the aforesaid conviction, the petitioners have preferred Criminal Appeal under Sec. 374 of the Cr.P.C. which is pending as Criminal Appeal No.299/2019 before the Session Court. The petitioners applied to respondent No.1 seeking compounding of the above offence under circular dtd. 9/9/2019 issued by the Government of India Ministry of Finance, Department of Revenue. Simultaneously, in the pending criminal appeal, the petitioners filed an application under Sec. 320 (5) of the Cr.P.C. seeking permission for the compounding of the offence. Vide order dtd. 1/11/2021, the learned Session judge dismissed the application that after conviction, no compounding can be done under the aforesaid circular.