IMPORTANT POINT
Where compounding of offence is permissible, jurisdiction of High Court under Section 482 Cr.P.C. may not be necessarily invoked by petitioner.

ORDER

Heard.

2. The petitioner by invoking the inherent jurisdiction of this Court under section 482 CrPC seeking quashing of the order dated 20.07.2023 passed by the learned ACJM (Special Court), Cuttack in 2(c)C.C. Case No.70 of 2013, whereby the application of the petitioner seeking discharge from the criminal prosecution initiated by the Revenue has been turn down.

3. The opposite party instituted a complaint under Section 190 Cr.P.C. against the present petitioner inter alia alleging that the petitioner had deducted the tax at source in respect of various payments of an amount of Rs.2,52,000/- from the payments made to the employees towards salary during month of April 2010 to November 2010 but did not deposit the TDS amount into the Central Government account by the stipulated dues dates. The deductor is the Drawing and Disbursing Officer of M/s. Indoo Ingots and Re-rollers Private Limited, which is a private company registered and incorporated under the relevant provisions of the Companies Act, 1956 and the said company is assessed to tax. It is alleged that the deductor being the Drawing and Disbursing Officer and being the responsible officer on behalf of the company was authorized to deduct the tax at source and was responsible to deposit the tax deducted by him from the deductee to the Government of India account on or before the statutory period i.e. 07.05.2010. The deductor had deducted tax at source in terms of Section 192 of the I.T. Act, 1961 during the financial year 2010-11 amounting to Rs.2,52,000/-. As per the I.T. Rules, it should have been deposited to the credit of Central Government Account by 7th of next month. However, the said amount has been deposited belatedly i.e. on 28.12.2011 after delay of more than 12 months. Hence, the complaint.

4. The learned trial Court has taken cognizance of the offences under Sections 276(B) of the Income Tax Act against the petitioner on the basis of the complaint filed by the opposite party. The petitioner moved an application for discharge from the aforementioned case on the ground that the petitioner has deposited the entire TDS amount deducted along with the delayed interest. He has explained the cause of delay and sought for benefit contemplated under Section 278AA of the I.T. Act. However, the application of the present petitioner has been turned down.

5. Mr. Kanungo, learned Senior Counsel for the petitioner has relied upon the judgment of this Court 15.4.2024 passed in CrlMC No.1921 of 2023 in the case of Sree Metaliks Limited and Others vs. Union of Indian and another and submitted that the case of the petitioner is directly covered by the said judgment.

6. Mr. Kedia, learned Junior Standing Counsel for the Income Tax has vehemently opposed the prayer made by the petitioner and submitted that this Court should not give indulgence to the petitioner on the face of the recent Circular dated 17.10.2024 issued by the CBDT, which provides fresh guidelines for compounding of offences under the I.T. Act. He has pointed out Clauses 4.6 and 8.3 of the said Circular issued by the CBDT on 17.10.2024, which reads as under:—

“4.6 Consolidation of offences: Any application for compounding of offence u/s.276B/276BB of the Act by an applicant for any period for a particular TAN should cover all defaults constituting offence u/s 276B/276BB in respect of that TAN for such period. For the purposes of considering the quantum of TDS defaults, the total default on account of nonpayment of TDS/TCS for a quarter shall be considered by combining the defaults in all the statements filed by the TDS deductor, in respect of the relevant quarter.

8.3 In case an applicant files Compounding application for offences committed u/s 276B/276BB of the Act, in respect of two or more TANs falling in two or more jurisdictions, the jurisdictional authority where the quantum of TDS default is higher shall be the Competent Authority. All other applications shall be transferred to such Competent Autho