Chapter XXII
OFFENCES AND PROSECUTIONS
50[1] Contravention
of order made under sub-section (3) of section
132.
275A. Whoever
contravenes any order referred to in 51[2] [the second proviso to sub-section (1) or] sub-section
(3) of section 132 shall be punishable with rigorous imprisonment which may
extend to two years and shall also be liable to fine.]
52[3] Failure
to comply with the provisions of clause (iib) of sub-section (1) of section 132.
275B. If a person who is required to afford the authorised officer the
necessary facility to inspect the books of account or other documents, as
required under clause (iib) of
sub-section (1) of section 132, fails to afford such facility to the authorised
officer, he shall be punishable with rigorous imprisonment for a term which may
extend to two years and shall also be liable to fine.]
53[4] Removal,
concealment, transfer or delivery of property to thwart tax recovery.
276. Whoever
fraudulently removes, conceals, transfers or delivers to any person54,[5] any property or any interest therein,
intending thereby to prevent that property or interest therein from being taken
in execution of a certificate under the provisions of the Second Schedule shall
be punishable with rigorous imprisonment for a term which may extend to two
years and shall also be liable to fine.]
55[6] Failure
to comply with the provisions of sub-sections (1) and (3) of section 178.
276A. If a person 56[7] [***]—
(i) fails to give the notice in accordance with sub-section (1)
of section 178; or
(ii) fails to set
aside the amount as required by sub-section (3) of that section; or
(iii) parts with any
of the assets of the company or the properties in his hands in contravention of
the provisions of the aforesaid sub-section,he shall
be punishable with rigorous imprisonment for a term which may extend to two
years :
Provided that in the absence of special and adequate reasons
to the contrary to be recorded in the judgment of the court, such imprisonment
shall not be for less than six months.]
Failure to comply with the provisions of
section 269AB or section 269-I.
276AA. [Omitted
by the Finance
Act, 1986, w.e.f.
1-10-1986.
Original section was
inserted by the Income-tax (Amendment) Act, 1981, w.e.f. 1-7-1982.]
57[8] Failure
to comply with the provisions of sections 269UC, 269UE and 269UL.
276AB. Whoever 58[9] [***] fails to comply with the provisions of section
269UC or fails to surrender or deliver
possession of the property under sub-section (2) of section 269UE or contravenes the provisions of sub-section
(2) of section 269UL shall be
punishable with rigorous imprisonment for a term which may extend to two years
and shall also be liable to fine :
Provided that in the absence of special and adequate reasons to the contrary to
be recorded in the judgment of the court, such imprisonment shall not be for
less than six months.]
59[10] Failure to pay tax to the credit of
Central Government under Chapter XII-D or XVII-B.
276B. If
a person fails to pay to the credit of the Central Government,—
(a) the tax
deducted at source by him as required by or under the provisions of Chapter
XVII-B; or
(b) the tax payable
by him, as required by or under—
(i) sub-section (2) of section 115-O; or
(ii) the second proviso to section 194B,he shall be punishable
with rigorous imprisonment for a term which shall not be less than three months
but which may extend to seven years and with fine.]
60[11] Failure to pay the tax collected at
source.
276BB. If a person fails to pay to the credit of the Central Government, the
tax collected by him as required under the provisions of section 206C, he shall be punishable with rigorous
imprisonment for a term which shall not be less than three months but which may
extend to seven years and with fine.]
61[12] Willful attempt to evade tax, etc.
276C. (1) If
a person wilfully attempts in any manner whatsoever to evade62[13] any
tax, penalty or interest chargeable or imposable under this Act, he shall,
without prejudice to any penalty that may be imposable on him under any other
provision of this Act, be punishable,—
(i) in a case where the amount sought to be
evaded exceeds one hundred thousand rupees, with rigorous imprisonment for a
term which shall not be less than six months but which may extend to seven
years and with fine;
(ii) in any other
case, with rigorous imprisonment for a term which shall not be less than three
months but which may extend to three years and with fine.
(2) If a person wilfully attempts in any
manner whatsoever to evade the payment of any tax, penalty or interest under
this Act, he shall, without prejudice to any penalty that may be imposable on
him under any other provision of this Act, be punishable with rigorous
imprisonment for a term which shall not be less than three months but which may
extend to three years and shall, in the discretion of the court, also be liable
to fine.
Explanation.—For the purposes of this section, a wilful attempt to evade any tax, penalty or interest
chargeable or imposable under this Act or the payment thereof shall include a
case where any person—
(i) has in his
possession or control any books of account or other documents (being books of
account or other documents relevant to any proceeding under this Act)
containing a false entry or statement; or
(ii) makes or causes
to be made any false entry or statement in such books of account or other
documents; or
(iii) wilfully omits
or causes to be omitted any relevant entry or statement in such books of
account or other documents; or
(iv) causes any other
circumstance to exist which will have the effect of enabling such person to
evade any tax, penalty or interest chargeable or imposable under this Act or
the payment thereof.]
63[14] Failure to furnish returns of income.
276CC. If
a person wilfully fails to furnish in due time 64[15] [the return of fringe benefits which he is
required to furnish under sub-section (1) of section 115WD or by notice given under sub-section (2) of
the said section or section
115WH
or] the return of income which he
is required to furnish under sub-section (1) of section 139 or by notice given under 65[16] [clause
(i) of sub-section (1) of section
142] or section 148 66[17] [or section
153A], he shall be punishable,—
(i) in a case where the amount of tax,
which would have been evaded if the failure had not been discovered67[18] , exceeds
one hundred thousand rupees, with rigorous imprisonment for a term which shall
not be less than six months but which may extend to seven years and with fine;
(ii) in any other
case, with imprisonment for a term which shall not be less than three months
but which may extend to three years and with fine:
Provided that a person shall not be proceeded against under this section for
failure to furnish in due time the 68[19] [return of fringe benefits under sub-section
(1) of section 115WD or] return of income under sub-section (1) of section
139—
(i) for any
assessment year commencing prior to the 1st day of April, 1975; or
(ii) for any
assessment year commencing on or after the 1st day of April 1975, if—
(a) the return is
furnished by him before the expiry of the assessment year; or
(b) the tax payable
by him on the total income determined on regular assessment, as reduced by the
advance tax, if any, paid, and any tax deducted at source, does not exceed
three thousand rupees.]
69[20] Failure to furnish return of income in
search cases.
276CCC. If a person wilfully fails to furnish in due time the return of total
income which he is required to furnish by notice given under clause (a) of section 158BC, he shall be punishable with imprisonment for
a term which shall not be less than three months but which may extend to
three years and with fine :
Provided that no person shall be punishable for any failure under this section in
respect of search initiated under section 132 or books of account, other documents or any assets requisitioned under section
132A, after the 30th day of June, 1995
but before the 1st day of January, 1997.]
70[21] Failure to produce accounts and
documents.
276D. If
a person wilfully fails to produce, or cause to be produced, on or before the
date specified in any notice served on him under sub-section (1) of section
142, such accounts and documents as are
referred to in the notice 71[22] [or
wilfully fails to comply with a direction issued to him under sub-section (2A) of
that section], he shall be punishable with rigorous imprisonment for a term
which may extend to one year or with fine equal to a sum calculated at a rate
which shall not be less than four rupees or more than
ten rupees for every day during which the default continues, or with both.]
Failure to comply with the provisions of section 269SS.
276DD. 72[23] [Omitted by the Direct Tax Laws (Amendment)
Act, 1987, w.e.f. 1-4-1989.]
Failure to comply with the provisions of
section 269T.
276E. 73[[24] Omitted by the Direct Tax Laws (Amendment) Act,
1987, w.e.f. 1-4-1989.]
74[25] False statement in verification, etc.
277. If
a person75[26]
makes a statement in any verification under this Act or under any rule made thereunder,
or delivers an account or statement which is false, and which he either knows
or believes to be false, or does not believe to be true, he shall be
punishable,—
(i) In a case where the amount of tax,
which would have been evaded if the statement or account had been accepted as
true, exceeds one hundred thousand rupees, with
rigorous imprisonment for a term which shall not be less than six months but
which may extend to seven years and with fine;
(ii) In any other case, with rigorous
imprisonment for a term which shall not be less than three months but which may
extend to three years and with fine.]
76[27] Falsification of books of account or
document, etc.
277A. If any person (hereafter in this section referred
to as the first person) wilfully and with intent to enable any other person
(hereafter in this section referred to as the second person) to evade any tax
or interest or penalty chargeable and imposable under this Act, makes or causes
to be made any entry or statement which is false and which the first person
either knows to be false or does not believe to be true, in any books of
account or other document relevant to or useful in any proceedings against the
first person or the second person, under this Act, the first person shall be
punishable with rigorous imprisonment for a term which shall not be less than
three months but which may extend to three years and with fine.
Explanation.—for the purposes of establishing the charge
under this section, it shall not be necessary to prove that the second person
has actually evaded any tax, penalty or interest
chargeable or imposable under this Act.]
77[28] Abetment of false return, etc.
278. If
a person abets or induces in any manner another person to make and deliver an account
or a statement or declaration relating to any income 78[29] [or any fringe benefits] chargeable to
tax which is false and which he either knows to be false or does not believe to
be true or to commit an offence under sub-section (1) of section 276C, he shall be punishable,—
(i) in a case where the amount of tax,
penalty or interest which would have been evaded, if the declaration, account
or statement had been accepted as true, or which is wilfully attempted to be
evaded, exceeds one hundred thousand rupees, with rigorous imprisonment for a
term which shall not be less than six months but which may extend to seven
years and with fine;
(ii) in any other
case, with rigorous imprisonment for a term which shall not be less than three
months but which may extend to three years and with fine.]
79[30] Punishment for second and subsequent
offences.
278A. If
any person convicted of an offence under section 276B or sub-section (1) of section 276C or section 276CC 80[31] [or section
276DD] 81[32] [or section
276E] or section 277 or section 278 is again convicted of an offence under any of the aforesaid provisions,
he shall be punishable for the second and for every subsequent offence with
rigorous imprisonment for a term which shall not be less than six months but
which may extend to seven years and with fine.]
82[33] Punishment not to be imposed in certain
cases.
278AA. Notwithstanding
anything contained in theprovisions of section 276A, section 276AB, 83[34] [or section
276B,] no person shall be punishable for
any failure referred to in the said provisions if he proves that there was
reasonable cause84[35] for
such failure.]
278B. (1) Where
an offence under this Act has beencommitted by a
company86[37] ,
every person who, at the time the offence was committed, was in charge of, and
was responsible to, the company for the conduct of the business of the company
as well as the company shall be deemed to be guilty of the offence and shall be
liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section
shall render any such person liable to any punishment if he proves that the
offence was committed without his knowledge or that he had exercised all due
diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in
sub-section (1), where an offence under this Act has been committed by a
company and it is proved that the offence has been committed with the consent
or connivance of, or is attributable to any neglect on the part of, any
director, manager, secretary or other officer of the company, such director,
manager, secretary or other officer shall also be deemed to be guilty of that
offence and shall be liable to be proceeded against and punished accordingly.
87[38] (3) Where an offence under this Act has
been committed by a person, being a company, and the punishment for such
offence is imprisonment and fine, then, without prejudice to the provisions
contained in sub-section (1) or sub-section (2), such company shall be punished
with fine and every person, referred to in sub-section (1), or the director,
manager, secretary or other officer of the company referred to in sub-section
(2), shall be liable to be proceeded against and punished in accordance with
the provisions of this Act.]
Explanation.—For the purposes of this section,—
(a) “company” means
a body corporate, and includes—
(i) a firm; and
(ii) an association
of persons or a body of individuals whether incorporated or not; and
(b) “director”, in
relation to—
(i) a firm, means
a partner in the firm;
(ii) any association
of persons or a body of individuals, means any member controlling the affairs thereof.]
88[39] Offences by Hindu undivided families.
278C. (1) Where
an offence under this Act has beencommitted by a
Hindu undivided family, the karta thereof shall be deemed to be guilty of the
offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render the karta
liable to any punishment if he proves that the offence was committed without
his knowledge or that he had exercised all due diligence to prevent the
commission of such offence.
(2) Notwithstanding anything contained in
sub-section (1), where an offence under this Act, has been committed by a Hindu
undivided family and it is proved that the offence has been committed with the
consent or connivance of, or is attributable to any neglect on the part of, any
member of the Hindu undivided family, such member shall also be deemed to be
guilty of that offence and shall be liable to be proceeded against and punished
accordingly.]
89[40] Presumption as to assets, books of
account, etc., in certain cases.
278D. (1) Where
during the course of any search made under section 132, any money, bullion, jewellery or other
valuable article or thing (hereafter in this section referred to as the assets)
or any books of account or other documents has or have been found in the
possession or control of any person and such assets or books of account or
other documents are tendered by the prosecution in evidence against such person
or against such person and the person referred to in section 278 for an offence under this Act, the provisions
of sub-section (4A) of section 132
shall, so far as may be, apply in relation to such assets or books of account
or other documents.
(2) Where any assets or books of account
or other documents taken into custody, from the possession or control of any
person, by the officer or authority referred to in clause (a) or clause (b) or clause (c),
as the case may be, of sub-section (1) of section 132A are delivered to the requisitioning officer
under sub-section (2) of that section and such assets, books of account or
other documents are tendered by the prosecution in evidence against such person
or against such person and the person referred to in section 278 for an offence under this Act, the provisions
of sub-section (4A) of section 132
shall, so far as may be, apply in relation to such assets or books of account
or other documents.]
90[41] Presumption as to culpable mental state.
278E. (1) In
any prosecution for any offence under this Act which requires a culpable mental
state on the part of the accused, the court shall presume the existence of such
mental state but it shall be a defence for the accused to prove the fact that
he had no such mental state with respect to the act charged as an offence in
that prosecution.
Explanation.—In this sub-section,
“culpable mental state” includes intention, motive or knowledge of a fact or
belief in, or reason to believe, a fact.
(2) For the purposes of this section, a fact is said to be
proved only when the court believes it to exist beyond reasonable doubt and not
merely when its existence is established by a preponderance of probability.]
Prosecution to be at instance of 91[42] [Chief Commissioner or Commissioner].
92[43] 279. 93[44] (1) A person shall not be proceeded against for an
offence under section 275A 94[45] [, section
275B], section 276, section 276A, section 276B, section
276BB, section 276C, section 276CC, section 276D, section
277 95[46] [, section
277A] or section 278 except with the previous sanction of the
Commissioner or Commissioner (Appeals) or the appropriate authority:
Provided that the Chief Commissioner or, as the case may be, Director General
may issue such instructions or directions to the aforesaid income-tax authorities
as he may deem fit for institution of proceedings under this sub-section.
Explanation.—For the purposes of
this section, “appropriate authority” shall have the same meaning as in clause
(c) of section 269UA.]
96[47] (1A)
A person shall not be proceeded
against for an offence under section 276C or section 277 in
relation to the assessment for an assessment year in respect of which the
penalty imposed or imposable on him under clause (iii) of sub-section (1) of section 271 has been reduced or waived by an order under section
273A.]
97[48] (2) Any offence
under this Chapter may, either before or after the institution of proceedings,
be compounded by the Chief Commissioner or a Director General.]
98[49] (3) Where any proceeding has been taken against
any person under sub-section (1), any statement made or account or other
document produced by such person before any of the income-tax authorities
specified in 99[50] [clauses
(a) to (g)] of section 116
shall not be inadmissible as evidence for the purpose of such proceedings
merely on the ground that such statement was made or such account or other
document was produced in the belief that the penalty imposable would be reduced
or waived, 1[51] [under
section 273A] or that the offence
in respect of which such proceeding was taken would be compounded.]
2[52] [Explanation.—For the removal of
doubts, it is hereby declared that the power of the Board to issue orders, instructions
or directions under this Act shall include and shall
be deemed always to have included the power to issue instructions or directions
(including instructions or directions to obtain the previous approval of the
Board) to other income-tax authorities for the proper composition of offences
under this section.]
3[53] Certain offences to be non-cognizable.
279A. Notwithstanding
anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), an offence
punishable under section 276B or section
276C or section 276CC or section 277 or section 278 shall be
deemed to be non-cognizable within the meaning of that Code.]
4[54] Proof of entries in records or
documents.
279B. Entries
in the records or other documents in the custody of an income-tax authority shall
be admitted in evidence in any proceedings for the prosecution of any person
for an offence under this Chapter, and all such entries may be proved either by
the production of the records or other documents in the custody of the
income-tax authority containing such entries, or by the production of a copy of
the entries certified by the income-tax authority having custody of the records
or other documents under its signature and stating that it is a true copy
of the original entries and that such original entries are contained in the
records or other documents in its custody.]
Disclosure of particulars by public
servants.
280. (1) If a public servant 5[55] [furnishes
any information or produces any document in contravention of the provisions of
sub-section (2) of section 138],
he shall be punishable with imprisonment which may extend to six months, and
shall also be liable to fine.
(2) No
prosecution shall be instituted under this section except with the previous sanction
of the Central Government.
[1]Inserted
by the Income-tax (Amendment) Act, 1965, w.e.f. 12-3-1965.
[2]Inserted
by the Finance Act, 1990, w.e.f. 1-4-1990.
[3]Inserted
by the Finance Act, 2002, w.e.f. 1-6-2002.
[4]Inserted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Original
section, dealing with failure to make payment or deliver return, etc., as
amended by the Finance Act, 1968, w.e.f. 1-4-1968 and the Taxation Laws
(Amendment) Act, 1970, w.e.f. 1-4-1971, was omitted by the Taxation Laws
(Amendment) Act, 1975, w.e.f. 1-4-1976.
[6]Inserted
by the Finance Act, 1965, w.e.f. 1-4-1965.
[7]Words “, without reasonable cause or excuse,”
omitted by the Taxation Laws (Amendment & Miscellaneous Provisions)
Act, 1986, w.e.f. 10-9-1986.
[8]Inserted
by the Finance Act, 1986, w.e.f. 13-5-1986.
[9]Words
“, without reasonable cause or excuse,” omitted by the Taxation Laws
(Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 10-9-1986.
[10]Substituted by the Finance Act, 1997, w.e.f.
1-6-1997. Prior to its substitution, section 276B, as inserted by the Finance
Act, 1968, w.e.f. 1-4-1968 and later on substituted by the Taxation Laws
(Amendment) Act, 1975, w.e.f. 1-10-1975 and amended by the Taxation Laws
(Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 10-9-1986 and
further substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1989, read as under :
“276B. Failure to pay the tax deducted at source.—If a person fails to pay to the credit of the Central Government, the tax deducted at source by him as required by or under the provisions of Chapter XVII-B, he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine.”
[11]Inserted
by the Finance Act, 1988, w.e.f. 1-6-1988.
[12]Substituted
for section 276C by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
Original section 276C was inserted by the Taxation Laws (Amendment) Act, 1970,
w.e.f. 1-4-1971.
[14]Inserted
by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[15]The
italicised words shall be inserted by the Finance Act, 2005, w.e.f. 1-4-2006.
[16]Substituted
for “sub-section (2) of section 139” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1989.
[17]Inserted
by the Finance Act, 2003, w.e.f. 1-6-2003.
[18]For
the meaning of the expression “if the failure had not been discovered”.
[19]The
italicised words shall be inserted by the Finance Act, 2005, w.e.f. 1-4-2006.
[20]Inserted
by the Income-tax (Amendment) Act, 1997, w.e.f. 1-1-1997.
[21]Inserted
by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971.
[22]Inserted
by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
[23]Prior
to its omission, section 276DD was inserted by the Finance Act, 1984, w.e.f.
1-4-1984, and later on amended by the Taxation Laws (Amendment &
Miscellaneous Provisions) Act, 1986, w.e.f. 10-9-1986
[24]Prior to its omission, section 276E was inserted by the Income-tax (Second Amendment) Act, 1981, w.e.f. 11-7-1981 and later on amended by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 10-9-1986.
[25]Substituted
by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[27]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004.
[28]Substituted
by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[29]The
italicised words shall be inserted by the Finance Act, 2005, w.e.f. 1-4-2006.
[30]Inserted by the
Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[31]Inserted
by the Finance Act, 1985, w.e.f. 24-5-1985.
[32]Inserted
by the Income-tax (Second Amendment) Act, 1981, w.e.f. 11-7-1981.
[33]Inserted
by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986,
w.e.f. 10-9-1986.
[34]Substituted
for “section 276B, section 276DD or section 276E,” by the Direct Tax Laws
(Amendment) Act, 1987, w.e.f. 1-4-1989.
[36] Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[38] Inserted by the Finance (No. 2) Act, 2004,
w.e.f. 1-10-2004.
[39]Inserted
by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[40]Inserted
by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[41]Inserted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 10-9-1986.
[42]Substituted
for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[43]See
also Letter [F. No. 4/7/69-IT(Inv.)], dated 21-3-1969
and Instruction No. 1317 of 1980.
[44]Substituted
by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991.
[45]Inserted by the Finance Act, 2002, w.e.f. 1-6-2002.
[46]Inserted
by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004.
[47]Substituted
by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975. Original
sub-section was inserted by the Income-tax (Amendment) Act, 1965, w.e.f. 12-3-1965.
[48]Substituted
by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991. Prior to its substitution,
sub-section (2) was substituted by the Finance Act, 1988, w.e.f. 1-4-1989.
[49] Inserted by the Income-tax (Amendment) Act, 1965, w.e.f. 12-3-1965.
[50]Substituted
for “clauses (a), (b), (c), (d) and (e)” by
the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[51]Substituted
for “under sub-section (4A) of section 271” by the Taxation Laws (Amendment)
Act, 1975, w.e.f. 1-10-1975.
[52]Inserted
by the Finance (No. 2) Act, 1991, w.r.e.f. 1-4-1962.
[53]Inserted
by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[54]Inserted
by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[55]Substituted
for “discloses any particulars, the disclosure of which is prohibited by
section 137” by the Finance Act, 1964, w.e.f. 1-4-1964.