CHAPTER XXII
OFFENCES
AND PROSECUTIONS
80[R1] [Contravention of order made
under sub-section (3) of section 132.
275A. Whoever
contravenes any order referred to in 81[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.]
82[R3] [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.]
83[R4] [Removal,
concealment, transfer or delivery of property to thwart tax recovery.
276. Whoever fraudulently removes, conceals, transfers or delivers to any person84[R5] , 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.]
85[R6] [Failure to
comply with the provisions of sub-sections (1) and (3) of section 178.
276A. If a
person 86[R7] [***]—
(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. 87[R8] [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.]
88[R9] [Failure to comply
with the provisions of sections 269UC, 269UE and 269UL.
276AB. Whoever 89[R10] [***] 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.]
90[R11] [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.]
91[R12] [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.]
92[R13] [Wilful attempt to evade tax, etc.
276C. (1) If a person wilfully
attempts in any manner whatsoever to evade93[R14] 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.]
94[R15] [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 95[R16] [clause
(i) of sub-section (1) of section 142] or section 148 95a[R17] [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 discovered96[R18] , 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 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.]
97[R19] [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.]
98[R20] [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 99[R21] [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.1[R22] [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. 2[R23] [Omitted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.]
3[R24] [False statement in verification, etc.
277. If a
person4[R25]
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.]
5[R26] [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.]
6[R27] [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 7[R28] [or
section 276DD] 8[R29] [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.]
9[R30] [Punishment not to be imposed in certain cases.
278AA.Notwithstanding anything contained in the
provisions of section 276A, section 276AB, 10[R31] [or
section 276B,] no person shall be punishable for any failure referred to in the
said provisions if he proves that there was reasonable cause11 [R32] for
such failure.]
12[R33] [Offences by companies.
278B. (1) Where
an offence under this Act has been committed by a company13[R34] ,
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.]
14[R35] [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.]
15[R36] [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.]
16[R37] [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 17[R38] [Chief Commissioner or Commissioner].
18[R39] 279. 19[R40] [(1) A person shall not be proceeded against for
an offence under section 275A 20[R41] [,
section 275B], 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.]
21[R42] [(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.]
22[R43] [(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.]
23[R44] [(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 24[R45] [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, 25[R46] [under
section 273A] or that the offence in respect of which such proceeding was
taken would be compounded.]
26[R47] [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.]
27[R48] [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.]
28[R49] [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 29[R50] [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.
[R4] 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.
[R6]Inserted by the Finance Act, 1965, w.e.f. 1-4-1965.
[R7]Words “, without reasonable
cause or excuse,” omitted by the Taxation Laws (Amendment & Miscellaneous
Provisions) Act, 1986, w.e.f. 10-9-1986.
[R8]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.”
[R9]Inserted by the Finance Act, 1986, w.e.f. 13-5-1986.
[R10]Words “, without reasonable cause or excuse,” omitted
by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986,
w.e.f. 10-9-1986.
[R11]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.”
[R13]Substituted for section
276C by the Taxation Laws (Amendment) Act, 1975, w.e.f. -10-1975. Original
section 276C was inserted by the Taxation Laws (Amendment) Act, 1970, w.e.f.
1-4-1971.
[R15]Inserted
by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R16] Substituted for “sub-section (2) of section
139” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R17]Inserted
by the Finance Act, 2003, w.e.f. 1-6-2003.
[R18]For the
meaning of the expression “if the failure had not been discovered”, see Direct Taxes
Manual, Vol. 3.
[R19] Inserted by the Income-tax (Amendment) Act,
1997, w.e.f. 1-1-1997.
[R20]Inserted by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971.
[R21]Inserted
by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
[R22]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.”
[R23]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.”
[R30]Inserted
by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986,
w.e.f. 10-9-1986.
[R31]Substituted
for “section 276B, section 276DD or section 276E,” by the Direct Tax Laws
(Amendment) Act, 1987, w.e.f. 1-4-1989.
[R32]For the
meaning of the expression “reasonable cause”, see Direct Taxes Manual, Vol. 3.
[R33]Inserted
by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R34]For the
meaning of the term “company”, see Direct Taxes Manual, Vol. 3.
[R37]Inserted by the Taxation
Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 10-9-1986.
[R40]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.
[R42]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.
[R43]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.”
[R44]. Inserted by the Income-tax (Amendment) Act,
1965, w.e.f. 12-3-1965.
[R45] Substituted for “clauses (a), (b), (c), (d) and (e)” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R46]Substituted for “under sub-section (4A) of section 271” by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R47] Inserted by the Finance (No. 2) Act, 1991, w.r.e.f. 1-4-1962.
[R48]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R49]Inserted
by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R50]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.