Delhi High Court
M/S Ska Infrastructure Pvt. Ltd. vs Union Of India & Anr. on 23 May, 2022
$~219
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 7912/2022
M/S SKA INFRASTRUCTURE PVT. LTD. ..... Petitioner
Through: Mr.Nikhil Majithia with Mr.Radhesh
Makrandi and Mr.Rohitashva
Chakraborty, Advocates.
versus
UNION OF INDIA & ANR. ..... Respondents
Through: Mr.Gigi C.George with Mr.Dheeraj
Singh, Advocates for UOI.
Mr.Sanjay Kumar, senior standing
counsel for the Revenue with
Ms.Easha Kadian, Advocate.
% Date of Decision: 23rd May, 2022
CORAM:
HON'BLE MR. JUSTICE MANMOHAN
HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA
JUDGMENT
MANMOHAN, J (Oral):
C.M.No.24121/2022
Exemption allowed, subject to all just exceptions.
Accordingly, the application stands disposed of.
W.P.(C) 7912 /2022 & C.M.No.24120/2022
1. Present Writ Petition has been filed challenging the order dated 22nd
April, 2022 by which the petitioner's application for compounding of
offences was rejected.
Signature Not Verified
Digitally Signed
Signing Date:26.05.2022
10:18:56
2. Learned counsel for the petitioner states that the Commissioner of
Income Tax (TDS), Delhi-2, New Delhi vide Order dated 31st January, 2019
sanctioned launch of prosecution against the petitioner company through its
Directors for delayed submission of tax deducted at source (TDS)
amounting to Rs.22,95,203/- for the financial year 2012-13 with the
Government Account. He further states that on 01st July, 2019, Complaint
Case No.7594 of 2019 was filed by Income Tax Office, before ACMM,
Central, Tis Hazari Courts, New Delhi under Section 276-B read with 279 of
the Income Tax Act, 1961 (hereinafter referred to as the 'Act'). He states
that the petitioner company in the year 2021 made payment of interest
amounting to Rs.7,75,242/- & late fees penalty amounting to Rs.2,60,485/-,
i.e. a total amount of Rs.10,35,727/- and hence currently no unpaid demand
is referenced on the online ITD system /Traces of Income Tax Department.
3. He further states that the Director of the petitioner company sought
for compounding of offences under Section 279 (2) of the Act by filing
application dated 20th January, 2022 before CCIT (TDS), Delhi. However,
the said application was rejected vide order dated 10th February, 2022 on the
ground that it was not filed within limitation and in prescribed form.
4. He states that though the petitioner company and both the Directors
had filed a fresh compounding application dated 14th March, 2022 in
prescribed format, yet the CCIT (TDS), Delhi mechanically rejected the said
application vide Order dated 22nd April, 2022 stating that it was filed
belatedly i.e. beyond the limitation period. He emphasises that from March
2020, the entire country was under a lockdown due to Covid-19 pandemic
outbreak. He contends that impugned order is in disregard of the orders
dated 23rd March, 2020 and 10th January, 2020 and 10th January, 2022
Signature Not Verified
Digitally Signed
Signing Date:26.05.2022
10:18:56
passed by the Supreme Court of India in In Re: Cognizance for Extension
of Limitation Suo Motu Writ Petition (Civil) No.3/2020 extending
limitation during Covid-19 pandemic.
5. He lastly states that the delay in filing the compounding application
was due to unforeseen medical circumstances as the father of the Directors
was in a precarious physical condition since December 2019, which
ultimately resulted in his death on 31st March, 2021.
6. Issue notice. Mr.Gigi C.George, Advocate accepts notice on behalf of
UOI and Mr.Sanjay Kumar, learned standing counsel accepts notice on
behalf of the Revenue.
7. Mr.Sanjay Sharma states that the petitioner's compounding
application has been rejected in accordance with the Clause 7(ii) of the
Guidelines for Compounding of Offences dated 14th June, 2019 inasmuch as
the petitioner's compounding application was delayed by thirty three
months.
8. Having heard learned counsel for the parties, this Court is of the view
that the power of compounding of offences is a quasi-judicial power, as it
definitely entails a judicial element/function and the discretion in
compounding is not unfettered. Consequently, this Court is of the view that
the petitioner is entitled to the benefit of extension of limitation as directed
by the Supreme Court in Cognizance for Extension of Limitation Suo
Motu Writ Petition (supra).
9. Accordingly, the order dated 22nd April, 2022 passed by the
respondents-Revenue is set aside and the CCIT (TDS), Delhi-2 is directed to
consider afresh the petitioner's application for compounding of offences
under Section 279 of the Act on merits and communicate to the petitioner a
Signature Not Verified
Digitally Signed
Signing Date:26.05.2022
10:18:56
reasoned decision thereon within eight weeks.
10. With the aforesaid directions, present writ petition along with pending
application stands disposed of.
MANMOHAN, J
MANMEET PRITAM SINGH ARORA, J
MAY 23, 2022
KA
Signature Not Verified
Digitally Signed
Signing Date:26.05.2022
10:18:56
