Vikram Singh @ Vicky & Anr vs Union Of India & Ors on 21 August, 2015
Having heard learned counsel for the parties, this Court is of the view
that compounding of offences cannot be taken as the matter of right. It is for
the law and authorities to determine as to what kind of offences should be
compounded, if at all, and under what conditions. (See: Vikram Singh vs.
Union of India & Ors. (2018) 401 ITR 307)
This Court is of the opinion that the guidelines issued by the CBDT
clearly stipulate that after compounding of the first offence, if the same
person comes forward for compounding of another offence through any
subsequent application, the applicable rate will be five per cent instead of
three per cent. This Court is also of the view that the expression "after
compounding of the said offence" means when the offence has been
compounded, meaning thereby, not only the stage after the compounding
order has been passed but also after the conditions stipulated in the said
order have been complied with like payments. In fact, there is a rationale
behind imposing a higher rate for subsequent offences as the respondents
want to incentivize compliance and want the public to deduct TDS and pay
to the Government.