Wp/1527/2008 Of M/S. Carol Info Services Ltd. Mumbai v. The Chief Commissioner Of Income Tax, Central -1 Mumbai And Ors

- 1 - IN THE HIGH COURT OF JUDICATURE AT BOMBAY O.O.C.J. WRIT PETITION NO.1527 OF 2008 ----------------------------------------------------- Office Notes, Office Memoranda of Coram, Court’s or Judge’s appearances, Court’s orders order or directions ----------------------------------------------------- ¦ Mr.V.Ramchandran with Mr.J. ¦ Subramanium, Mr.Nitin Pradhan i/b ¦ A.K.Jasani for the Appellant. ¦ Mr.B.M.Chatterjee for the ¦ Respondent. ¦ ¦ ¦ CORAM: D.K.DESHMUKH & ¦ J.P.DEVADHAR,JJ. ¦ DATED:7TH AUGUST, 2008 P.C.: By this petition the Petitioner challenges two orders, one dated 11-2-2008 and other dated 20-2-2008. By those orders the application under Section 279 made by the Petitioner for compounding of offences has been rejected. 2. The short grievance made against the order is that the application made by the Petitioner for compounding of the offences has been rejected without giving the Petitioner an opportunity of being heard. It is common ground that the Petitioner was not given an - 2 - opportunity of being heard before order rejecting the application was made. 3. Perusal of the application filed for compounding of the offences shows that there are several grounds raised by the Petitioner in support of his application that the offences against him should be compounded. He also relied on the guide-lines issued by the Department which are to be followed in such cases. In our opinion, considering that the order had drastic consequences and the issue was complicated, it was necessary for the authority to grant an opportunity of being heard to the Petitioner before making the order. 4. In this situation, in our opinion, following order would meet the ends of justice. O R D E R (i) Both orders impugned in the petition are set aside. (ii) Proceedings are remitted back - 3 - to the Chief Commissioner for denovo consideration and decision in accordance with law. (iii) It is made clear that before passing the order the Chief Commissioner shall grant an opportunity of being heard to the Petitioner. (iv) Complaints that have been filed pursuant to the orders impugned in the petition shall be kept pending till fresh order is made. (v) It goes without saying that in case fresh order is in favour of the Petitioner, then the complaints shall be withdrawn. If it goes against the Petitioner, then the Department shall be entitled to prosecute the complaints. (vi) Rule made absolute accordingly. No order as to costs. (D.K.DESHMUKH, J.) (J.P.DEVADHAR,J.)