Offences and Prosecution under Income Tax - Tax Administration, Income Tax Laws | Income Tax Laws - B Com PDF Download
CONTRAVENTION
Contravention of order made under section 132(3) – Sec.275A. A person contravening the order made u/s. 132(1) (second proviso) or 132(3),in case of search and seizure, shall be punishable with rigorous imprisonment up to 2 years and also with fine.
Failure to comply with the provisions of section 132(1) (iib) –Sec.275B.
Where the authorised officer, during the course of search proceeding u/s.132 requires facility to inspect the books of account or other documents and if any person fails to afford such facility to the authorised officer, he shall be punishable with rigorous imprisonment up to 2 years and also with fine.
Removal, concealment, transfer or delivery of property to defeat tax recovery - Sec.276
Any person fraudulently removing, concealing, transferring or delivering property to thwart(stop) tax recovery will be punishable with rigorous imprisonment up to 2 years and also with fine.
Failure to comply with the provisions of sub-sections (1) and (3) of Sec178 & Sec 276A.
Any person failing to comply with provisions of Sec.178(1)or (3) regarding company in liquidation or parting with assets of the company in contravention of these subsections shall be punishable with rigorous imprisonment for 6 months to 2 years.
Failure
Failure to pay tax to the credit of Central Government under Chapter XVII – B or XII-D –Sec.276B
Any person failing to pay any amount to the credit of the Central Government being –
I. Tax deducted at source under Chapter XVII-B; or
II. Tax payable on distributed profits by a company u/s.115-O;or
III. Tax required to be paid before releasing winning, in case of cash being not shall be punishable (non-cognizable offence u/s.279A) with rigorous imprisonment for 3 months to 7 years and also with fine.
Failure to pay tax collected at source – Sec.276BB
Any person failing to pay the tax collected under the provisions of Sec.206C, shall be punishable with rigorous imprisonment for 3 months to 7 years and also with fine.
Wilful attempt to evade tax, etc. – Sec.276C
According to Sec.276C(1),any person wilfully attempting to evade any tax, penalty or interest (non-cognizable offence u/s.279A);
I. Where tax sought to be evaded exceeds Rs.1 lakh,shall be punishable with rigorous imprisonment for 6 months to 7 years and also with fine
II. In other cases, shall be punishable with rigorous imprisonment for 3 months to 3years and also with fine.
Any person wilfully attempting to evade payment of any tax penalty or interest(non-cognizable offence u/s.279A) will be punished with rigorous imprisonment for 3months to 3years and also with fine – Sec.276C (2).
Failure to furnish return of income – Sec.276CC
Any person wilfully failing to furnish return of income u/s.139 (1) or in response to notice u/s.142 (1) (i) or Sec.148 or Sec.153A (non-cognizable offence u/s.279A).
I. Where tax sought to be evaded exceeds Rs.1 lakh will be punished with rigorous imprisonment for 6months to 7years and also with fine.
II. In other cases will be punished with rigorous imprisonment for 3months to 3years and also with fine.
This section shall not apply if the return of income is furnished by the assessee before the expiry of the assessment year or if the tax payable on the total income determined on regular assessment as reduced by advance tax and TDS does not exceed Rs.3,000.
Special Audit-
Failure to produce accounts and documents or non compliance of direction for special audit – Sec.276D
Any person wilfully failing to produce accounts and documents u/s.142(1) or to comply with a notice u/s.142(2A),shall be punishable with rigorous imprisonment up to 1year or with fine of Rs.4 to Rs.10 for every day of default or both.
False statement in verification ,etc- Sec.277
Any person making false statement in verification or delivering false account, etc., (non-cognizable offence u/s.279A).
I. Where tax sought to be evaded exceeds Rs.1lakh will be punished with rigorous imprisonment for 6 months to 7years and also with fine.
II. In other cases, will be punished with rigorous imprisonment for 3 months to 3years and also with fine.
Falsification of books- Sec.277A
If any person wilfully and with intent to enable any other person to evade tax or interest or penalty chargeable and imposable under the 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, then such person shall be punishable with rigorous imprisonment for a term which shall not be less than 3 months but which may extend to 3 years and with fine.
Explanation – For the purpose of establishing the charge under this section, it shall not be necessary to prove that the other person has actually evaded any tax, penalty or interest chargeable or imposable under the Act.
Abatement of false return ,etc.- Sec.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 he shall be punishable(Non-cognizable offence u/s.279A).
I. In a case where tax, penalty or interest sought to be evaded exceeds Rs.1lakh with rigorous imprisonment for 6 months to 7 years and also with fine;
II. In other cases, with rigorous imprisonment for 3 months to 3 years and also with fine.
Reasonable cause Sec.278AA
No person is punishable for any failure u/s.276A, or 276B if he proves that there was reasonable cause for such failure.
Immunity when Settlement proceedings abate – Sec.278AB
Commissioner has the power to grant immunity from prosecution u/s278AB where the proceedings before the settlement commission have abated.
Punishment for second and subsequent offences- Sec.278A
Second and subsequent offences u/s.276B, 276C (1).276CC, 277 or 278 shall be punishable with rigorous imprisonment for 6 months to 7 years and also with fine.
Offences by Companies etc.
Sec.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.
Sec.278B (2) - However, no such person shall be 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. 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 of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly-.
Sec.278B (3) - Where an offence has been committed by a person, being a company and the punishment for such offence is imprisonment and fine, then such company shall be punished with fine and every person who is responsible for such offence such as director, Manager etc., shall be liable to be proceeded against and punished in accordance with the provisions of the Act –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
Offences by Hindu Undivided Family – Sec.278C
Where an offence is committed by a HUF, the Karta of the HUF shall be deemed to be guilty of the offence and he shall be proceeded against and punished. Karta can prove that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence in which case he will not be liable for punishment. If it is established that any member of the HUF is guilty of the offence, such member is liable to be proceeded against and punished accordingly.
Presumption as to culpable mental state – Sec.278E
In any prosecution for any offence under the income tax Act which requires 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 –Sec.278E.
“Culpable mental state” includes intention, motive or knowledge of a fact or belief in, or reason to believe, a fact. 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.
Sanction for prosecution and compounding of offences-Sec.279
a. Prosecution for offences- u/s.275A,275B,276,276A,276B,276BB,276C,276CC,276D,277,277A and 277 is required to be instituted with the previous sanction of Director General/Chief Commissioner/Commissioner, except where the prosecution is at the instance of the commissioner (Appeals).
b. The offences under chapter XXII can be compounded (either before or after the institution of proceedings) by the Director General or Chief Commissioner.
Certain Offences to be non-cognizable – Sec.279A
Notwithstanding anything contained in the code of Criminal Procedure, an offence punishable u/s.276B or 276C or 276CC or Sec.277 or Sec.278 shall deemed to be non-cognizable within the meaning of the code of Criminal Procedure. According to the Code of Criminal Procedure ”non-cognizable offence “means an offence for which a police officer has no authority to arrest without warrant. Only in the case of a cognizable offence arrest can be made without warrant.
Proof of entries in records or documents-Sec.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 committed. All such entries may be proved either by the production of the records or other documents in the custody containing such entries or by the production of 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 – Sec.280
If a public servant publishes any information or produces any document in contravention of the provisions of Sec.138 (2) he shall be liable to fine. No prosecution shall be instituted under this section except with the previous sanction of the Central Government.
Case Laws
i) The assessee being a company is a juristic person and substantive sentence cannot be imposed on it. However,other consequences like payment of fine etc., would ensue –Madhumilan Syntex Ltd.vs.Union of India (2007) 290 ITR 199 (SC) & ACIT Vs. Velliappa Textiles Ltd.(2003),263 ITR550 (SC).
ii) Prosecution for evasion of tax would depend upon the final verdict in respect of additions made in the assessment. Even where the additions are sustained, it is possible that levy of penalty is ruled out in the facts of the case. If penalty itself is not liveable or deleted, the case for the prosecution where means rea is required cannot survive. It has been held that prosecution is not eligible where penalty action had been dropped –K. C. Bulders vs.ACIT(2004) 265 ITR 562 (SC) and G.L.Didwania vs.ITO (19970 224 ITR 687 (SC).
iii) In a complaint for a tax offence, it is possible that the accused (assessee) may be either discharged or acquitted. Where there is mere discharge of the accused for non pursuance of the complaint, there is scope for a second complaint .On the other hand, if the accused is acquitted, no second complaint is possible. This is the basic difference between sections 249 and 256 of the Code of Criminal Procedure.Consequently,in a case where the complaint was absent and there is no representation on behalf of revenue resulting in discharge of the accused ,second complaint filed shall be entertain by issue of summons to the accused – N.Rengaraj vs.P.Dhamodarasamy (2009) 319 ITR 216 (Mad).
PENALTIES
Updated with Amendment made vide Finance Act, 2018 and applicable for A.Y. 2019-20 and Onwards:
[AY 2019-20]
| Section | Nature of default | Penalty leviable |
| (1) | (2) | (3) |
| 140A(3) | Failure to pay wholly or partly— | Such amount as Assessing Officer may impose but not exceeding tax in arrears |
| (a) self-assessment tax, or | ||
| (b) interest and fee, or | ||
| (c) both | ||
| under section 140A(1) | ||
| 158BFA(2) | Determination of undisclosed income of block period | Minimum : 100 per cent of tax leviable in respect of undisclosed income |
| Maximum : 300 per cent of tax leviable in respect of undisclosed income. | ||
| 221(1) | Default in making payment of tax | Such amount as Assessing Officer may impose but not exceeding amount of tax in arrears |
| 234E | Failure to file statement within time prescribed in section 200(3) or in proviso tosection 206C(3) | Rs. 200 for every day during which failure continues but not exceeding tax deductible/collectible |
| 234F | Default in furnishing return of income within time prescribed in section 139(1) | a) Rs. 5000 if return is furnished on or before 31 December of assessment year. b) Rs. 10,000 in any other case Note: if total income of the person does not exceeds Rs. 5 lakh then fee payable shall be Rs. 1000 |
| 270A(1) | Under-reporting and misreporting of income | A sum equal to 50% of the amount of tax payable on under-reported income. However, if under-reported income is in consequence of any misreporting thereof by any person, the penalty shall be equal to 200% of the amount of tax payable on under-reported income |
| 271(1)(b) | Failure to comply with a notice under section 115WD(2)/115WE(2)/142(1) or section 143(2) or failure to comply with a direction under section 142(2A) | Fixed at Rs. 10,000 for each failure. Note:- However, the above penalty shall not be levied to and in relation to any assessment for the A.Y commencing on or after the 1st day of April, 2017. |
| 271(1)(c) | Concealment of particulars of income or fringe benefits or furnishing of inaccurate particulars of income or fringe benefits | Minimum : 100 per cent |
| Maximum : 300 per cent of tax sought to be evaded in addition to tax payable | ||
| Note: | ||
| ‘Amount of tax sought to be evaded’ shall be aggregate of tax sought to be evaded under the general provisions and the tax sought to be evaded under the provisions of MAT or AMT. However, if an amount of concealed income is considered both under the general provisions and provisions of MAT or AMT, such amount shall not be considered in computing tax sought to be evaded under provisions of MAT or AMT. Further, where provisions of MAT or AMT are not applicable, the computation of tax sought to be evaded under the provisions of MAT or AMT shall be ignored. | ||
| Note:- However, the above penalty shall not be levied to and in relation to any assessment for the A.Y commencing on or after the 1st day of April, 2017. | ||
| 271(4) | Distribution of profits by registered firm otherwise than in accordance with partnership deed and as a result of which partner has returned income below the real income | Not exceeding 150 per cent of difference between tax on partner’s income assessed and tax on income returned, in addition to tax payable |
| Note:- However, the above penalty shall not be levied to and in relation to any assessment for the A.Y commencing on or after the 1st day of April, 2017. | ||
| 271A | Failure to keep, maintain, or retain books of account, documents, etc., as required under section 44AA | Rs. 25,000 |
| 271AA(1) | (1) Failure to keep and maintain information and documents required by section 92D(1) or 92D(2) | 2% of value of each international transaction/or specified domestic transaction entered into |
| (2) Failure to report such transaction | ||
| (3) Maintaining or furnishing incorrect information or document | ||
| 271AA(2) | Failure to furnish information and document as required under Section 92D(4) | Rs. 5,00,000/- |
| 271AAA | Where search has been initiated before 1-7-2012 and undisclosed income found | 10% of undisclosed income |
| 271AAB(1) | Where search has been initiated on or after 1-7-2012 but before 15-12-2016 and undisclosed income found | (a) 10% of undisclosed income of the specified previous year if assessee admits the undisclosed income; substantiates the manner in which it was derived; and on or before the specified date pays the tax, together with interest thereon and furnishes the return of income for the specified previous year declaring such undisclosed income |
| (b) 20% of undisclosed income of the specified previous year if assessee does not admit the undisclosed income, and on or before the specified date declare such income in the return of income furnished for the specified previous year and pays the tax, together with interest thereon; | ||
| (c) 60% of undisclosed income of the specified previous year if it is not covered by (a) or (b) above | ||
| 271AAB(1A) | Where search has been initiated on or after 15-12-2016 and undisclosed income found | (a) 30% of undisclosed income of the specified previous year if assessee admits the undisclosed income; substantiates the manner in which it was derived; and on or before the specified date pays the tax, together with interest thereon and furnishes the return of income for the specified previous year declaring such undisclosed income (b) 60% of undisclosed income of the specified previous year in any other case. |
| 271AAC | Income determined by Assessing Officer includes any income referred to in section 68,section 69, section 69A, section 69B, section 69C or section 69D for any previous year. [if such income is not included by assessee in his return or tax in accordance with section 115BBE has not been paid] | 10% of tax payable under section 115BBE. |
| 271B | Failure to get accounts audited or furnish a report of audit as required under section 44AB | One-half per cent of total sales, turnover or gross receipts, etc., or Rs. 1,50,000, which-ever is less |
| 271BA | Failure to furnish a report from an accountant as required by section 92E | Rs. 1,00,000 |
| 271BB | Failure to subscribe any amount to units issued under scheme referred to in section 88A(1) | 20 per cent of such amount |
| 271C | Failure to deduct tax at source, wholly or partly, under sections 192 to 196D (Chapter XVII-B) or failure to pay wholly or partly tax u/s 115-O(2) or second proviso tosection 194B | Amount equal to tax not deducted or paid |
| 271CA | Failure to collect tax at source as required under Chapter XVII-BB | Amount equal to tax not collected |
| 271D | Taking or accepting any loan or deposit or specified sum in contravention of the provisions of Section 269SS. “Specified sum” means any sum of money receivable, whether as advance or otherwise, in relation to transfer of an immovable property, whether or not the transfer takes place. | Amount equal to loan or deposit or specified sum so taken or accepted |
| 271DA | Receiving an amount of Rs. 2 lakh or more from a person in a day [section 269ST] | Amount equal to such receipt |
| 271E | Repayment of any loan or deposit or specified advance otherwise than in accordance with provision of Section 269T. “Specified advance” means any sum of money in the nature of advance, by whatever name called, in relation to transfer of an immovable property, whether or not transfer takes place. | Amount equal to loan or deposit or specified advance so repaid |
| 271F | Failure to furnish return as required by section 139(1) or by its provisos before the end of the relevant assessment year | Rs. 5,000 Note: Applicable upto the Assessment year 2017-18 |
| 271FA1 | Failure to furnish an annual information return as required under section 285BA(1)2 | Rs. 500 per day of default |
| Failure to furnish annual information return within the period specified in notice u/s285BA(5) | Rs. 1,000 per day of default | |
| 271FAB | Section 9A provides that fund management activity carried out by an eligible offshore investment fund through an eligible fund manager acting on behalf of such fund shall not constitute business connection in India (subject to certain conditions). The provision requires that eligible investment fund shall furnish within 90 days from the end of the financial year a statement, in respect of its activities in a financial year, in the prescribed form containing information relating to fulfilment of specified conditions and such other information or documents as may be prescribed. Penalty to be levied if investment fund failed to comply with the requirement. | Rs. 5,00,000 |
| 271FB | Failure by an employer to furnish the return of fringe benefits as required under section 115WD(1) | Rs. 100 for every day of default |
| 271G3 | Failure to furnish any information or document as required by section 92D(3) | 2% of the value of the international transaction/specified domestic transaction for each failure |
| 271GA | Section 285A provides for reporting by an Indian concern if following two conditions are satisfied: a) Shares or interest in a foreign company or entity derive substantial value, directly or indirectly, from assets located in India; and b) Such foreign company or entity holds such assets in India through or in such Indian concern. In this case, the Indian entity shall furnish the prescribed information for the purpose of determination of any income accruing or arising in India under Section 9(1)(i). In case of any failure, the Indian concern shall be liable to pay penalty. | Penalty shall be: a) a sum equal to 2% of value of transaction in respect of which such failure has taken place, if such transaction had effect of, directly or indirectly, transferring right of management or control in relation to the Indian concern; b) a sum of Rs. 5,000 in any other case. |
| 271GB(1) | Failure to furnish report under section 286(2) | Rs. 5,000 per day upto 30 days and Rs. 15,000 per day beyond 30 days |
| 271GB(2) | Failure to produce the information and documents within the period allowed under section 271GB(6) | Rs. 5,000 for every day during which the failure continues. |
| 271GB(3) | Failure to furnish report or failure to produce information/documents under section 286even after serving order under section 271GB(1) or 271GB(2) | Rs. 50,000 for every day for which such failure continues beginning from the date of serving such order. |
| 271GB(4) | Failure to inform about inaccuracy in report furnish under section 286(2) Or furnishing of inaccurate information or document in response to notice issued under section 286(6). | Rs. 5,00,000 |
| 271H4 | Failure to deliver/cause to be delivered a statement within the time prescribed in section 200(3) or the proviso to section 206C(3), or furnishes incorrect information in the statement | W.e.f. 1-10-2014 Assessing Officer may direct payment of penalty. Penalty shall not be less than Rs. 10,000 but may extend to Rs. 1,00,000 |
| 271-I | As per section 195(6) of the Act, any person responsible for paying to a non-resident or to a foreign company, any sum (whether or not chargeable to tax), shall furnish the information relating to such payment in Form 15CA and 15CB. Penalty shall be levied in case of any failure. | Rs. 1,00,000 |
| 271J | Furnished incorrect information in any report or certificate by an accountant or a merchant banker or a registered valuer | Rs. 10,000 for each incorrect report or certificate |
| 272A(1) | Refusal or failure to : | Rs. 10,000 for each failure/default |
| (a) answer questions | ||
| (b) sign statement | ||
| (c) attend to give evidence or produce books of account, etc., in compliance with summons under section 131(1) | ||
| (d) comply with notice u/s 142(1), 143(2) or failure to comply with direction issued u/s 142(2A). | ||
| 272A(2) | Failure to : | |
| (a) furnish requisite information in respect of securities as required under section 94(6) ; | Rs. 10,000 for each failure/default. (In respect of penalty for failure, in relation to a declaration mentioned in section 197A, a certificate as required by section 203 and returns u/ss 206 and 206C and statements under Section 200(2A) or section 200(3) or proviso to section 206C(3) or section 206C(3A), penalty shall not exceed amount of tax deductible or collectible) | |
| (b) give notice of discontinuance of business or profession as required under section 176(3) ; | ||
| (c) furnish in due time returns, statements or certificates, deliver de-claration, allow inspection, etc., under sections 133, 134, 139(4A), 139(4C), 192(2C), 197A, 203, 206, 206C, 206C(1A) and 285B; | ||
| (d) deduct and pay tax under section 226(2) | ||
| (e) file a copy of the prescribed statement within the time specified in section 200(3)or the proviso to section 206C(3) (up to 1-7-2012) | ||
| (f) file the prescribed statement within the time specified in section 206A(1) | ||
| (g) Failure to deliver or cause to be delivered a statement under Section 200(2A) or Section 206C(3A) within prescribed time. With effect from June 1, 2015, it is mandatory for an office of the Government, paying TDS or TCS, as the case may be, without production of a challan, to deliver a statement in the prescribed form and manner to the prescribed authority. | ||
| 272AA(1) | Failure to comply with section 133B | Not exceeding Rs. 1,000 |
| 272B | Failure to comply with provisions of section 139A/139A(5)(c)/(5A)/(5C) | Rs. 10,000 |
| 272BB(1) | Failure to comply with section 203A | Rs. 10,000 for each failure/default |
| 272BB(1A) | Quoting false tax deduction account number/tax collection account number/tax deduction and collection account number in challans/certificates/statements/documents referred to in section 203A(2) | Rs. 10,000 |
Note : No penalty is imposable for any failure under sections 271(1)(b), 271A, 271AA 271B 271BA 271BB 271C 271CA 271D 271E 271F 271FA 271FAB 271FB 271G 271GA 271GB271H 271-I 272A(1)(c) or (d), 272A(2) 272AA(1) 272B 272BB(1) 272BB(1A) 272BBB(1) 273(1)(b) 273(2)(b) and 273(2)(c) if the person or assessee proves that there was reasonable cause for such failure (section 273B).
Section 273AA provides that a person may make application to the Principal Commissioner/Commissioner for granting immunity from penalty, if (a) he has made an application for settlement undersection 245C and the proceedings for settlement have abated; and (b) penalty proceeding have been initiated under this Act. The application shall not be made after the imposition of penalty after abatement.
OFFENCES AND PROSECUTIONS
| Section | Nature of default | Punishment (rigorous imprisonment) | Fine |
| (1) | (2) | (3) | (4) |
| 275A | Contravention of order made under section 132(1) (Second Proviso) or 132(3) in case of search and seizure | Up to 2 years | No limit |
| 275B | Failure to afford necessary facility to authorised officer to inspect books of account or other documents as required under section 132(1)(iib) | Up to 2 years | No limit |
| 276 | Removal, concealment, transfer or delivery of property to thwart tax recovery | Up to 2 years | No limit |
| 276A | Failure to comply with provisions of section 178(1) and (3) re : company in liquidation | 6 months to 2 years | — |
| 276AB | Failure to comply with provisions of sections 269UC, 269UE and 269UL re : purchase of properties by Government5 | 6 months to 2 years | No limit |
| 276B | Failure to pay to credit of Central Government (i) tax deducted at source under Chapter XVII-B (non-cognizable offence under section 279A), or (ii) tax payable u/s 115-O(2) or second proviso to section 194B | 3 months to 7 years | No limit |
| 276BB | Failure to pay the tax collected under the provisions of section 206C | 3 months to 7 years | No limit |
| 276C(1) | Wilful attempt to evade tax, penalty or interest or under-reporting of Income (non-cognizable offence under section 279A)— | ||
(a) where tax sought to be evaded exceeds Rs. 1 lakh (Rs. 25 lakh w.e.f. 1-7-2012) | 6 months to 7 years | No limit | |
(b) in other cases | 3 months to 3 years (2 years w.e.f. 1-7-2012) | No limit | |
| 276C(2) | Wilful attempt to evade payment of any tax, penalty or interest (non-cognizable offence under section 279A) | 3 months to 3 years (2 years w.e.f. 1-7-2012) | No limit |
| 276CC | Wilful failure to furnish returns of fringe benefits under section 115WD/115WH or return of income under section 139(1) or in response to notice under section 142(1)(i) or section 148 or section 153A (non-cognizable offence under section 279A)— | ||
(a) where tax sought to be evaded exceeds Rs. 1 lakh (Rs. 25 lakh w.e.f. 1-7-2012) | 6 months to 7 years | No limit | |
(b) in other cases Note : *** A person shall not be liable to be prosecuted under this section if he furnishes the return before expiry of assessment year or the tax payable by such person, not being a company, as reduced by the advance tax, does not exceed Rs. 3,000. | 3 months to 3 years (2 years w.e.f. 1-7-2012) | No limit | |
| 276CCC | Wilful failure to furnish in due time return of total income required to be furnished by notice u/s 158BC(a) | 3 months to 3 years | No limit |
| 276D6 | Wilful failure to produce accounts and documents under section 142(1) or to comply with a notice under section 142(2A) | Up to 1 year | Rs. 4 to Rs. 10 for every day of default |
| 277 | False statement in verification or delivery of false account, etc. (non-cognizable offence under section 279A) | ||
(a) where tax sought to be evaded exceeds Rs. 1 lakh (Rs. 25 lakh w.e.f. 1-7-2012) | 6 months to 7 years | No limit | |
(b) in other cases | 3 months to 3 years (2 years w.e.f. 1-7-2012) | No limit | |
| 277A | Falsification of books of account or document, etc., to enable any other person to evade any tax, penalty or interest chargeable/leviable under the Act | 3 months to 3 years (2 years w.e.f. 1-7-2012) | No limit |
| 278 | Abetment of false return, account, statement or declaration relating to any income or fringe benefits chargeable to tax (non-cognizable offence under section 279A) | ||
(a) where tax, penalty or interest sought to be evaded exceeds Rs. 1 lakh (Rs. 25 lakh w.e.f. 1-7-2012) | 6 months to 7 years | No limit | |
(b) in other cases | 3 months to 3 years (2 years w.e.f. 1-7-2012) | No limit | |
| 278A | Second and subsequent offences under section 276B, 276C(1), 276CC, 277 or 278 | 6 months to 7 years | No limit |
| 280(1) | Disclosure of particulars by public servants in contravention of section 138(2) [Prosecution to be instituted with previous sanction of Central Government under section 280(2)] | Up to 6 months (simple/rigorous) | No limit |
Notes :
1. No person is punishable for any failure under section 276A, 276AB or 276B if he proves that there was reasonable cause for such failure (vide section 278AA).
2. (a) Prosecution for offences under section 275A, section 275B, section 276, section 276A, section 276B, section 276BB, section 276C, section 276CC, section 276D, section 277, section 277Aand section 278 to be instituted with previous sanction of Principal Director General/Principal Chief Commissioner/Principal Commissioner/Director General/Chief Commissioner/Commissioner, except where prosecution is at the instance of the Commissioner (Appeals) or the appropriate authority (vide section 279).
(b) The offences under Chapter XXII can be compounded (either before or after the institution of proceedings) by Principal Director General/Director General or Principal Chief Commissioner/Chief Commissioner.
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, such company shall be punished with fine and every person, referred to in sub-section (1) of section 278B, or the director, manager, secretary or other officer of the company referred to in sub-section (2) of section 278B shall be liable to be proceeded against and punished in accordance with the provisions of this Act.
4. With effect from 1-4-2008 under section 278AB a person may apply to the Principal Commissioner/Commissioner for granting immunity from prosecution, if he has applied for settlement under section 245C and the proceedings have abated under section 245HA. The application shall not be made after institution of prosecution proceedings after abatement.
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1. With effect from assessment year 2015-16 “annual information return” has been changed to “statement of financial transaction or reportable account” and word “return” has been changed to “statement”.
2. With effect from assessment year 2015-16 a new section 271FAA has been inserted to provide for a penalty of Rs. 50,000 for furnishing inaccurate statement of financial transaction or reportable account in certain cases.
3. With effect from 1-10-2014 TPO can also levy penalty.
4. Section 271H as amended with effect from 1-10-2014 provides that penalty shall be levied by Assessing Officer.
5. Non-operative with effect from 1-7-2002.
6. With effect from October 1, 2014, if a person wilfully fails to produce accounts and documents as stated or wilfully fails to comply with the direction given, he shall be punishable with rigorous imprisonment for a term which may extend to one year and with fine (quantum of fine has not been specified).
7. No limit w.e.f. 1-10-2014.
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