Relaxation of time-Compounding of Offences under Direct Tax Laws-One-time measure
September, 13th 2019
Circular No. 25/2019
F.No.285/0812014-IT(Inv. V) I'?:; SO
Government of India
Ministry of Finance
Department of Revenue
(Central Board of Direct Taxes)
Room No. 515, 5th Floor, C-Block,
Dr. Shyama Prasad Mukherjee Civic Centre,
Minto Road, New Delhi -110002.
Dated: 09.09.20 19
Subject: Relaxation of time-Compounding of Offences under Direct Tax Laws-One-time
The Central Board of Direct Taxes (CBDT) has been issuing guidelines from time to
time for compounding of offences under the Direct Tax Laws, prescribing the eligibi lity
conditions. One of the cond itions fo r filing of Compounding application is that, it should be
filed with in 12 months from filing of complaint in the court.
2. Cases have been brought to the notice of CBDT where the taxpayers could not apply
for Compounding of the Offence, as the compounding application was filed beyond 12
months, in view of para 8(vii) of the Guidelines for Compounding of Offences under Direct
Tax Laws, 2014 dated 23.12.2014 or in view of para 7(ii) of the Guidelines for Compounding
of Offences under Direct Tax Laws, 2019 dated 14.06.2019.
3. With a view to mitigate unintended hardsh ip to taxpayers in deserving cases, and to
reduce the pendency of ex ist ing prosecution cases before the courts, the CBDT in exercise
of powers u/s 119 of the Income-tax Act, 196 1 (the Act) read with explanation below sub-
section (3) of section 279 of the Act issues this Circular.
4.1 As a one-time measure, the condition that compounding application shall be filed
with in 12 months, is hereby relaxed, under the following conditions:
i) Such application shall be tiled before the Competent Authority i.e. the Pro
CCIT/CCIT/Pr. DGIT/DGIT concerned, on or before 31.12.2019.
ii) Relaxation shall not be available in respect of an offence which is
generally/normally not compoundable, in view of Para 8.1 of the Guidelines dated
4.2 Appl ications fi led before the Competent Authority, on or before 3 1.12.2019 shall be
deemed to be in time in terms of Para 7(ii) of the Guidelines dated 14.06.2019.
4.3 It is clarified that Para 9.2 of the Guidel ines dated 14.06.2019, shall not apply to all
such applications made under thi s one-time measure. The other prescriptions of the
Gu idelines dated 14.06.2019 including the compounding procedure, compounding charges
etc. shall apply to such app li cations.
5. For the purposes of this Circular, application can be filed in all such cases where-
a) prosecution proceedings are pending before any court of law for more than 12
b) any compounding application for an offence filed previously was withdrawn by the
app licant solely for the reason that such application was filed beyond 12 months, or
c) any compounding application for an offence had been rejected previously solely for
6. Hind version shall follow. ---t zq ---
(Mam ta Bansal)
Director to the Government of India
I. P.S. to Finance Minister
2. P.S. to Revenue Secretary
3. The Chairman and all the Mem bers, CBDT
4. All the Pr. ChiefCommissioners/ChiefCommissioners IPr. Director Generalsl
Director Generals of Income-tax
5. All the officers of the rank of Jo int Secretary/CIT and above in the CBDT
6. The CIT (Media & Technical Policy), CBDT
7. ADG (Systems)-41 Web Manager for placing it on www.incometaxindia.gov.in
8. Add!. CIT, Data Base Ce ll for placing it on www.irsofficersonline.gov.in
9. The Guard File
Director to the Government ofIndia