Patna High Court
Ishwar Chandra SharmaversusThe Union of India
- Decided
- Disposal
- DISPOSED
Holding
The Court did not quash the impugned order but allowed the petitioner to re‑file the compounding application within three weeks and directed the respondents to decide it within six weeks, thereby staying further action.
Summary
Petitioner Ishwar Chandra Sharma filed a writ petition challenging the order dated 27.03.2025 of the Principal Chief Commissioner of Income Tax, Bihar & Jharkhand, which declined his request to compound an offence under Section 276B of the Income Tax Act, 1961 for the FY 2012-13. He contended that the delay in depositing TDS was caused by a malfunctioning electronic code and not by his fault, and sought a writ of certiorari, mandamus and a stay of any prosecution. The respondents indicated that if the petitioner re‑files a compounding application in accordance with the Central Board of Direct Taxes guidelines, the matter would be considered within six weeks. The Court granted the petitioner liberty to file the compounding application within three weeks and directed the respondents to decide it within six weeks, holding that the impugned order would not prejudice the petitioner. Consequently, the writ petition was disposed of on these terms.
Issues considered
- Whether the order declining the petitioner's compounding application under Section 276B can be quashed.
- Whether a writ of mandamus can be issued directing the Income Tax authorities to consider the compounding application.
- Whether a stay of prosecution under Section 276B is warranted pending the filing of a fresh compounding application.
Legislation cited
- Income Tax Act, 1961 — s. 276B, 279(2)
Subjects
- Income Tax
- Compounding of offences
- Section 276B
- Writ petition
- Certiorari
- Mandamus
- TDS delay
- High Court
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.11610 of 2025
======================================================
Ishwar Chandra Sharma Son of Sri Rajo Sharma, Resident of At House No.
20, Indrapuri, Road No. 1, Atal Path, Near Rajiv Nagar Underpass, P.O.-
Keshri Nagar, P.S.-Patliputra, District-Patna, Bihar-800024.
... ... Petitioner/s
Versus
1. The Union of India through the Revenue Secretary, Ministry of Finance,
Department of Revenue, Nehru Place, New Delhi, Delhi-110019.
2. The Principal Chief Commissioner of Income Tax, Bihar and Jharkhand, 1st
Floor, Central Revenue Building, Beerchand Patel Marg, Patna, Bihar-
800001.
3. The Commissioner of Income Tax (TDS), Patna.
4. The Additional Commissioner of Income Tax (Tech.), Bihar and Jharkhand,
1st Floor, Central Revenue Building, Beerchand Patel Marg, Patna, Bihar-
800001.
5. The Income Tax Officer, TDS Ward, Income Tax Office, Bhagalpur.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr. Kumar Kaushik, Advocate
Mrs.Namrata Dubey, Advocate
For the Respondent/s : Mrs. Archana Sinha, (Sr. SC for Income Tax)
Mrs. Shilpi Keshri (Jr. SC for Income Tax)
======================================================
CORAM: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH
and
HONOURABLE MR. JUSTICE ARUN KUMAR JHA
ORAL ORDER
(Per: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH)
2 25-03-2026 The present writ petition has been filed seeking the
following reliefs:-
“1. i. For issuance of an order, direction or a
writ of Certiorari for quashing and setting aside
the order dated 27.03.2025 communicated to the
petitioner through Memo No. 2710 dated
31.03.2025 issued by Principal Chief
Commissioner of Income Tax, Bihar and
Jharkhand whereby and whereunder the
Patna High Court CWJC No.11610 of 2025(2) dt.25-03-2026
2/3
aforesaid authority has declined the prayer of
the petitioner to compound the offence under
Section 276B of the Income Tax Act, 1961 for the
financial year, 2012-13 in exercise of powers
under sub-section 2 of Section 279 of the Income
Tax Act, 1961.
ii. For issuance of an order, direction or a writ of
Mandamus or an appropriate writ for directing
the respondent authorities to consider the prayer
of the petitioner to compound the offence under
Section 276B of the Income Tax Act, 1961 in
view of the fact that the delay in submission of
TDS amount was due to the reason that the code
for depositing the amount to the credit of Income
Tax Department had become ineffective and the
delayed deposition of the TDS amount was not
due to the fault of the petitioner.
iii. For issuance of an order, direction or an
appropriate writ for staying the consequential
action in pursuance of the impugned order and
for precluding the authorities from initiating
prosecution against the petitioner for offences
under Section 276 B of the Income Tax, 1961
during the pendency of this writ application and
thereafter.”
2. At the outset, the Ld. Senior Counsel for the respondents
submits, by referring to paragraph no. 35 of the counter affidavit
filed by the respondents, that in case the petitioner re-
submits/submits compounding application in terms of the
compounding guidelines issued by the Central Board of Direct
Taxes (CBTD) vide F. No. 285/08/2014-IT (Inv.V)/163 dated
17.10.2024, the respondents would definitely consider the same
in accordance with law and pass appropriate orders within a
Patna High Court CWJC No.11610 of 2025(2) dt.25-03-2026
3/3
period of six weeks.
3. In view of the aforesaid, the Ld. Counsel for the petitioner
seeks liberty on behalf of the petitioner for filing the
compounding application within a period of three weeks from
today.
4. It is needless to state that in case appropriate
compounding application is filed by the petitioner within a
period of three weeks from today, the respondent authorities
shall consider the same in accordance with law and pass a
reasoned and a speaking order within a period of six weeks
thereafter.
5. It is clarified that the impugned order dated 27.03.2025
passed by the Principal Chief Commission of Income Tax, Bihar
& Jharkhand, shall not cause prejudice to the petitioner while
consideration of his compounding application.
6. The writ petition stands disposed off on the aforesaid
terms.
(Mohit Kumar Shah, J)
(Arun Kumar Jha, J)
S.Sb/-
U
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