Section­ 276C(1)- Compounding of offence permissible on payment of 100% of tax sought to be evaded

Mehta Laboratories Vs PCIT (Gujarat High Court) When the CBDT circular refers to the amount sought to be evaded, it must be seen and understood in light of the provisions contained in section 276C(1) and in turn must be seen as amount sought to be evaded. 100% of tax sought to be evaded would be the basic compounding fees. Compounding of offence under Section­ 276C(1) of the Act, 1961 would be permissible on payment of 100% of the tax sought to be evaded and not 100% of the amount sought to be evaded by the assessee. FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT 1. Rule returnable forthwith. M...