Chapter XXII
Offences and prosecutions
60[R1] [Contravention of order
made under sub-section (3) of section 132.
275A. Whoever contravenes any order referred to in 61[R2] [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.]
62[R3] [Removal, concealment, transfer or delivery of property to
thwart tax recovery.
276. Whoever fraudulently removes, conceals, transfers or delivers to any person, 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.]
63[R4]
[Failure to
comply with the provisions of sub-sections (1) and (3) of section 178.
276A. If a person 64 [R5] [***]—
(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.
64a[R6] 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.]
65[R7] [Failure to comply with the provisions of sections 269UC,
269UE and 269UL.
276AB. Whoever 66[R8] [***] 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.]
67[R9] [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.]
68[R10] [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.]
69[R11] [Wilful attempt to
evade tax, etc.
276C.(1) If a person wilfully attempts in any
manner whatsoever to evade 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.]
70[R12] [Failure to furnish returns of income.
276CC. If a person wilfully fails to
furnish in due time the return of income which he is required to furnish under
sub-section (1) of section 139 or by notice given under 71[R13] [clause (i) of sub-section (1)
of section 142] or section 148, he shall be punishable,—
(i) in a case where the amount of tax,
which would have been evaded if the failure had not been discovered, 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 of 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 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.]
72[R14] [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.]
73[R15] [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 74[R16] [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.
75[R17] 276DD. [Omitted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.]
Failure to comply with the provisions of
section 269T.
76[R18] 276E. [Omitted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.]
77[R19] [False statement in verification, etc.
277. If a person 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.]
78[R20] [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 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[R21] [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[R22] [or section
276DD] 81[R23] [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[R24] [Punishment not
to be imposed in certain cases.
278AA.
Notwithstanding anything
contained in the provisions of section 276A, section 276AB, 83[R25] [or section
276B,] no person shall be punishable for any failure referred to in the said
provisions if he proves that there was reasonable cause for such failure.]
84 [R26] [Offences by
companies.
278B.
(1) Where an offence under this
Act has been committed by a company, 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.
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.]
85 [R27] [Offences by
Hindu undivided families.
278C.
(1) Where an offence under this Act
has been committed 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.]
86 [R28] [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.]
87[R29] [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 88[R30] [Chief
Commissioner or Commissioner]
89[R31] 279.90[R32] [(1) A person shall not be proceeded
against for an offence under section 275A, section 276, section 276A, section
276B, section 276BB, section 276C, section 276CC, section 276D, section 277 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].
91[R33] (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].
92[R34] (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.]
93 [R35] (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 94[R36] [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,
95[R37] [under section
273A] or that the offence in respect of which such proceeding was taken would
be compounded.]
96[R38] [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.]
97[R39] [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.]
98[R40] [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 99[R41] [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.
[R1]Inserted by the Income-tax (Amendment) Act, 1965, w.e.f. 12-3-1965.
[R2]Inserted by the Finance Act, 1990, w.e.f. 1-4-1990.
[R3]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.
[R4]Inserted by the Finance Act, 1965, w.e.f. 1-4-1965.
[R5]“, without reasonable cause or excuse,” omitted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 10-9-1986.
[R6]Omitted section 276AA stood as under:
“Whoever, without reasonable cause or excuse, fails to comply with the provisions of section 269AB or with any direction issued under sub-section (5) of section 269-I 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.”
[R7]Inserted by the Finance Act, 1986, w.e.f. 13-5-1986.
[R8]“, without reasonable cause or excuse,” omitted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 10-9-1986.
[R9]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 substitution 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 the credit of the Central Government, the tax deducted at source by him as required by or under the provisions of chapter XVIIB, 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.”
[R10]Inserted by the Finance Act, 1988, w.e.f. 1-6-1988.
[R11]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.
[R12]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R13]Substituted for “sub-section (2) of section 139” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R14]Inserted by the Income-tax (Amendment) Act, 1997, w.e.f. 1-1-1997.
[R15]Inserted by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971.
[R16]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
[R17]Prior to its omission, section 276DD, as 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, stood as under:
“If a person takes or accepts any loan or deposit in contravention of the provisions of section 269SS, he shall be punishable with imprisonment for a term which may extend to two years and shall also be liable to fine equal to the amount of such loan or deposit.”
[R18]Prior to its omission, section 276E, as 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, stood as under:
“If a person repays any deposit referred to in section 269T otherwise than in accordance with the provisions of that section, he shall be punishable with imprisonment for a term which may extend to two years and shall also be liable to fine equal to the amount of such deposit.”
[R19]Substituted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R20]Substituted by the Taxation Laws (Amendment) Act, 1975, w.e.f 1-10-1975
[R21]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R22]Inserted by the Finance Act, 1985, w.e.f. 24-5-1985.
[R23]Inserted by the Income-tax (Second Amendment) Act, 1981, w.e.f. 11-7-1981.
[R24]Inserted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 10-9-1986.
[R25]Substituted for “section 276B, section 276DD or section 276E,” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R26]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R27]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R28]Inserted, ibid.
[R29]Inserted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 10-9-1986.
[R30]Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R31]See also Letter [F. No. 4/7/69-IT(Inv.)], dated 21-3-1969 and Instruction No. 3170 of 1980.
[R32]Substituted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991. Prior to substitution, sub-section (1) stood as under:
‘(1) A person shall not be proceeded against for an offence under section 275A, section 276, section 276A, section 276B, section 276BB, section 276C, section 276CC, section 276D, section 277 or section 278 except with the previous sanction of the Chief Commissioner or Director General or Commissioner :
Provided that no such sanction shall be required if the prosecution is at the instance of the Commissioner (Appeals) or the appropriate authority.
Explanation.—For the purposes of this section, “appropriate authority” shall have the same meaning as in clause (c) of section 269UA.’
Earlier sub-section (1) was substituted by the Finance Act,
1988, w.e.f. 1-4-1989. Sub-section was also amended by the Taxation Laws
(Amendment) Act, 1975, w.e.f. 1-10-1975, the Income-tax (Second Amendment) Act,
1981, w.e.f. 11-7-1981, Finance Act, 1982, w.e.f. 1-4-1982 and Taxation Laws
(Amendment) Act, 1984, w.e.f. 1-4-1984.
[R33]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.
[R34]Substituted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991. Prior to its substitution, sub-section (2), as substituted by the Finance Act, 1988, w.e.f. 1-4-1989, stood as under :
“(2) Any offence under this Chapter may, either before or after the institution of proceedings, be compounded by—
(a) the Board or a Chief Commissioner or a Director General authorised by the Board in this behalf, in a case where the prosecution would lie at the instance of the Commissioner (Appeals) or the appropriate authority ;
(b) the Chief Commissioner or Director General or Commissioner, in any other case.”
[R35]Inserted by the Income-tax (Amendment) Act, 1965, w.e.f. 12-3-1965.
[R36]Substituted for “clauses (a), (b), (c), (d) and (e)” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R37]Substituted for “under sub-section (4A) of section 271” by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R38]Inserted by the Finance (No. 2) Act, 1991, w.r.e.f. 1-4-1962.
[R39]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R40]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R41]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.