Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | income tax |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Income-Tax Act, 1961: Ss.279(2) Explanation and 119(1)- Compounding of offence- Discretion of Commissioner of Income-Tax-Exercise of-Whether curtailed by guidelines laid down by the Central Board of Direct Taxes under Section - 119(1) requiring the Commissioner of Income-Tax to obtain Board's approval before deciding compounding of offence and not to give any assurance before~ obtaining approval - lnstructions issued by the Board-Whether binding on all officers and persons employed in the execution of the Act even if they deviated from provisions of the Act. The first respondent, Secretary and principal officer or a Company was prosecuted, along with Directors of the Company under Section 276-B of the Income Tax Act, 1961, on the charge that he had committed defaults in depositing the income tax deducted from the salaries or the employees of the Company during the assessment years 1970-80 to 1982-83. The second respondent, the Managing Director of another Company, was also prosecuted for the same offence. Both the respondents applied to the Commissioner, Income-tax, invoking his power under Section 279(2) of the Act as it stood prior to insertion of Explanation to the Section by Finance Act (2) of 1991, made seperative with effect from April 1, 1962 and seeking composition of the offences against them. Meanwhile, the respondents filed two separate writ petitions before the High Court challenging the instructions No. 1307 dated March 11, 1980 issued by the Central Board of Direct Taxes under Section 119(1) of the Act providing guidelines for exercise of powers under Section 279(2) of the Act.The High Court allowed the writ petitions and quashed the instructions, on the ground that the circulars had substantially curtailed the powers of the Commissioner, in view of the instructions that the previous approval of the Board should always be obtained before deciding to compound an offence and that no assurance or any kind should be given to the assessee before obtaining approval, and that this was not the intention of the legislature when Section 279 of the Act was incorporated. |
Judge | Hon'ble Mr. Justice Kuldip Singh |
Neutral Citation | 1992 INSC 101 |
Petitioner | Y.p. Chawla And Ors |
Respondent | M.p. Tiwari And Anr. |
SCR | [1992] 2 S.C.R. 440 |
Judgement Date | 1992-03-31 |
Case Number | 207 |
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