{"id":216003,"date":"2019-06-21T13:31:56","date_gmt":"2019-06-21T08:01:56","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=216003"},"modified":"2019-06-21T13:41:05","modified_gmt":"2019-06-21T08:11:05","slug":"revised-guidelines-for-compounding-of-offences-under-direct-tax-laws-2019-notified","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/06\/21\/revised-guidelines-for-compounding-of-offences-under-direct-tax-laws-2019-notified\/","title":{"rendered":"Revised Guidelines for Compounding of Offences under Direct Tax Laws, 2019 — Notified"},"content":{"rendered":"

Central Board of Direct Taxes (CBDT) has issued the revised guidelines for compounding of offences under the Direct Tax Laws, 2019. The said guidelines came into effect from 17-06-2019.<\/p>\n

The applications received before 17-06-2019 shall continue to be dealt with in accordance with the Guidelines dated 23-12-2014.<\/p>\n

Compounding is not a matter of right<\/strong><\/p>\n

Revised guidelines make it clear that compounding of offences is “not a matter of right” and the department can extend such relief only in certain cases keeping in view factors like “conduct of the person, the nature and magnitude of the offence on the context of the facts and circumstances of each case<\/strong>.”<\/p>\n

Applicability of these Guidelines to prosecutions under IPC<\/strong><\/p>\n

Offences may be compounded by the Competent Authority on the satisfaction of the eligibility conditions prescribed<\/strong> in these Guidelines keeping in view factors such as to conduct of the person, the nature and magnitude of the offence in the context of the facts and circumstances of each case.<\/p>\n

Compounding Offences<\/strong><\/p>\n

Compounding Provision Section 279(2)<\/strong> of the Act provides that any offence under Chapter XXII of the Act may, either, before or after the institution of proceedings, be compounded by the Pr. CCIT\/CCIT\/Pr. DGIT\/DGIT. As per Section 2(15A) and 2(21) of the Act, Chief Commissioner of Income Tax includes Principal Chief Commissioner of Income Tax, and Director General of Income Tax includes Principal Director General of Income Tax. These Guidelines are issued in exercise of power under Section 119 of the Act read with an explanation below sub-section (3) of Section 279 of the Act.<\/p>\n

Classification of Offences<\/strong>
\nThe offences under Chapter-XXII of the Act are classified into two parts (Category ‘A’ and Category ‘B’) for the\u00a0limited purpose of Compounding of Offences.<\/p>\n

Offences normally not to be compounded<\/strong><\/p>\n