Co-Accused Can Apply Separately For Compounding Of Offences Committed By Company Or HUF Under Income Tax Act: Delhi High Court

The Delhi High Court ruled that a co-accused in a tax-related offence is entitled to apply separately for compounding of the offence under the Income Tax Act. In this case, the issue arose when a co-accused was denied the right to compound offences committed jointly with a company or HUF. The court clarified that compounding is a matter of individual discretion, and each co-accused has the right to apply for compounding, even if the offence was committed collectively. This decision ensures that each individual is treated separately in the compounding process, reaffirming their rights under tax laws.