HC allowed benefit of section 279 (1A) compounding of Prosecution In Tax Evasion Case

PCIT Vs K.M.Mammen (Madras High Court) Conclusion: Since the penalty was reduced from 300% to 100% of the tax sought to be evaded, assessee was entitled to the benefit of Section 279(1A) of Income Tax.  Moreover, department having failed to challenge the order passed by Single Judge in earlier, could not challenge the directions given by the Court for compounding of criminal prosecution. Held: Assessee was the Chairman and Managing Director of MRF Limited.  AO allegedly received information that assessee had transferred through LGT Bank Liechenstein, substantial sums of Euro currencies in fa...