Madras HC Directs Decision on Income Tax Compounding Application in 4 Weeks

Parimala Vs Chief Commissioner of Income Tax (Madras High Court)

In the case of Parimala Vs Chief Commissioner of Income Tax, the Madras High Court addressed issues concerning procedural delays by the Income Tax Department. The petitioner had initially received a show cause notice, to which a reply was submitted. However, the department proceeded with criminal prosecution without considering this response. Following the dismissal of a quash petition on June 17, 2022, the court directed the petitioner to file a compounding application. The petitioner complied and filed the application on October 17, 2022.

Despite this, the compounding application was not reviewed or disposed of by the authorities. The Madras High Court, upon reviewing the case, noted the lack of action on the application and issued a directive for the Income Tax Department to consider and resolve the compounding application within four weeks. This decision underscores the necessity for timely action on procedural matters to ensure fair treatment of applicants.

FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT

This writ petition has been filed to direct the respondent to consider and dispose of the compounding application filed by the petitioner dated 17.10.2022.

2. The learned counsel for the petitioner would submit that in the present case, the show cause notice was issued by the 2^nd respondent and without considering the reply filed by the petitioner, the 2^nd respondent had initiated the criminal prosecution. Subsequently, a petition was filed by the petitioner to quash the said proceedings and the same was dismissed vide order dated 17.06.2022, whereby a direction was also issued to the petitioner to file necessary compounding application before the concerned Authority. Pursuant to the said order, the petitioner had filed the compounding application before the 1^st respondent. However, the same was not at all considered by the 1^st respondent till date. Hence, this petition has been filed.

3. After filing of this petition, notice was served and the names of the respondents were also printed in the cause list. However, today when this matter was taken up for hearing, there is no representation on behalf of the respondents.

4. Heard the learned counsel for the petitioner and perused the materials available on record.

5. In the present case, the compounding application dated 17.10.2022 was not at all considered and disposed of by the respondents till date. Therefore, this Court directs the respondents to consider the compounding application filed by the petitioner dated 17.10.2022 and dispose of the same on its own merits and in accordance with law within a period of 4 weeks from the date of receipt of a copy of this order.

6. With the above directions, this writ petition is disposed of. No costs. Consequently, the connected miscellaneous petition is also closed.