<s>[INST] Whether compounding allowed for the offences for which the assessee has been convicted? [/INST] Any offence under Direct tax laws for which an assessee has been convicted earlier with imprisonment for 2 years or more, with or without fine by a court of law, cannot be compounded.

Similarly, offences cannot be compounded if they are committed by a person who was convicted by a court of law for an offence under any law other than Direct Tax Laws, for which the prescribed punishment was the imprisonment of two years or more (with or without fine) and which is directly related to the offence sought to be compounded.​ </s>