Judgment

KULDIP SINGH:- Special leave granted.

2. Whether the Central Board of Direct Taxes, (the Board) under S. 119 of the Income-tax Act, 1962 (the Act) can issue instructions to control the discretion of the Commissioner of Income-tax under S. 279(2) of the Act, to compound the offences, is the short question for our consideration.

3. M. P. Tiwari and M. L. Passi are the respondents before us in these appeals. M. P. Tiwari is the Secretary and principal officer of M/ s. Hans Raj Gupta and Co. Pvt. Ltd. He along with other Directors of the said Company was prosecuted under S. 276-B of the Act on the charge that he committed defaults in depositing the income-tax deducted from the salaries of the employees of the Company during the assessment years 1979-80 to 198283. M. L. Passi was the Managing Director of M/ s. Inspi Auto Industry Pvt. Ltd. He was also prosecuted under S. 276-B of the Act for committing defaults in depositing the tax deducted at the source by the Company.

4. Both Tiwari and Passi applied to the Commissioner, Income-tax, invoking his power under S. 279(2) of the Act seeking composition of the offences against them. Section 279(2) of the Act as it was at the relevant