Sec. 276 CC of Income Tax Act, 1961—Penalty— The assessee moved the application to seek compounding on 14.06.2018 which was rejected on the ground that the same had not been made within the stipulated time of 12 months of the filing of complaint and that the petitioner had already been convicted. The conviction of the petitioner was set aside by the learned ASJ. the petitioner moved an application to seek review of the rejection of earlier application for compounding. The respondents have rejected the said review application on the ground that the petitioner has not been acquitted and merely his conviction has been set aside on a technical ground. the assessee has pointed out that the limitation for filing the application for compounding has since been done away with vide circular No.25/2019 dated 09.09.2019. He further submits that the respondents have adopted a wrong yardstick for rejection of the review application by stating that the assessee has not been acquitted. He submits that if the assessee was to be acquitted, there would be no question of his seeking compounding. As on date it cannot be said that the petitioner stands convicted since his conviction has been set aside by the learned ASJ. The matter has been remanded back for leading of further evidence.
Court direct that the ACMM, dealing with the assessee’s prosecution shall adjourn the proceedings to a date after the hearing of the petition. --- JAI SINGH GOEL vs. CIT.[2020] 23 ITCD Online 84 (DEL)