Section 63 of ITA, 2000 : Section 63: Compounding Of Contraventions

Explanation using Example

Let's consider a hypothetical situation where a software company named XYZ Ltd. is found guilty of breaching data privacy norms under the Information Technology Act, 2000. The Controller or the adjudicating officer, under Section 63(1), can compound this contravention either before or after the adjudication proceedings have begun, imposing a fine not exceeding the maximum penalty for such a contravention.

However, if XYZ Ltd. commits a similar contravention within three years from the date of the first contravention, Section 63(2) states that the provision of compounding will not be applicable. They will be penalized without the benefit of compounding. But, if they commit a similar contravention after three years, it will be treated as a first contravention and can be compounded.

Once a contravention has been compounded under Section 63(1), as per Section 63(3), no further proceedings will be taken against XYZ Ltd. for that specific contravention.