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'Prosecutions' Under Income Tax Department

 

6.3.      PROSECUTIONS

There are some lapses on the part of the assessee which are punishable through the courts. Whenever, Income Tax department feels that a particular person has committed a particular offence, a wrongful act or he is guilty of a crime, the department will initiate the proceedings before a Magistrate. Punishment given by the department can be both in the shape of Monetary nature or/and  of imprisonments. But for that, the Income Tax Authority have to launch the proceedings in a court of law. The following are cases where the person commits offence under the Act, making the guilty persons liable to be punished by the court.

1.         For removing any Assets, Books of Account, Documents etc. found during search in contravention of order served U/s 132(3) ['Prosecutions'][ Sec. 275A]

Whoever contravenes any order referred to in Sec. 132(3),  shall be punishable with rigorous imprisonment which may extend to two years and shall also be liable to fine.

2.         Removal, concealment, transfer or delivery of property to avoid tax recovery ['Prosecutions'][ Sec. 276 ]

When a person  fraudulently removes, conceals, transfers or delivers to any person, any property or any interest therein with the objective of thwarting recovery of tax, he shall be liable to rigorous imprisonment upto 2 years and with fine.

3.         Failure to pay tax to the credit of Central Government under Chapter XII-D or XVII-B. ['Prosecutions'] [ Sec. 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 3 months but which may extend to 7 years and with fine.

4.        Failure to pay the tax collected at source. ['Prosecutions'][ Sec. 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 3 months but which may extend to 7 years and with fine.

5.         Willful attempt to evade tax, etc. ['Prosecutions'][ Section 276 (C)(1)]

If a person willfully attempts in any manner whatsoever to evade any tax, penalty or interest chargeable or imposable under this Act, he shall be punishable,—

(i)  in a case where the amount sought to be evaded exceeds Rs. 1,00,000, with rigorous imprisonment for a term which shall not be less than 6 months but which may extend to 7 years and with fine;

(ii)  in any other case, with rigorous imprisonment for a term which shall not be less than 3 months but which may extend to 3 years and with fine.

6.         Failure to furnish returns of income ['Prosecutions'][ Sec. 276CC]

If a person willfully fails to furnish in due time the return of fringe benefits which he is required to furnish or the return of income which he is required to furnish, he shall be punishable,—

(i)  in a case where the amount of tax exceeds Rs.1,00,000, with rigorous imprisonment for a term which shall not be less than 6 months but which may extend to 7 years and with fine;

(ii)  in any other case, with imprisonment for a term which shall not be less than 3 months but which may extend to 3 years and with fine:

7.         Failure to produce accounts and documents. ['Prosecutions'][ Sec. 276D]

If a person willfully fails to produce on or before the date specified in any notice served on him such accounts and documents, he shall be punishable with rigorous imprisonment for a term which may extend to 1 year or with fine equal to a sum calculated at a rate which shall not be less than Rs,4 or more than Rs.10 every day during which the default continues, or with both.

8.         Abetment of false return, etc. ['Prosecutions'][ 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 [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, he shall be punishable,—

(i)  in a case where the amount of tax, penalty or interest which would have been evaded,  exceeds Rs.1,00,000, with rigorous imprisonment for a term which shall not be less than 6 months but which may extend to 7 years and with fine;

(ii)  in any other case, with rigorous imprisonment for a term which shall not be less than 3 months but which may extend to 3 years and with fine.]

9.         Offences by companies. ['Prosecutions'][ Sec. 278 B]

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:

10.       Offences by Hindu undivided families. ['Prosecutions'] [ Sec. 278C]

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.

 
More Topics ...
Various Authorities
Power Of Income Tax Authorities Relating To Search And Seizure [ Section 132 ]
Application Of Seized Or Requisitioned Assets [Section132(B)]
Power Of Survey [ Section 133a ]
Provision Relating To Power To Collect Certain Information [Section 133b]
Disclosure Of Information Regarding Assessees To Certain Authorities [ Section 138 ]
Payment of Tax
Modes of recovery of Tax
Refunds
Introduction- Deduction of Tax at Source (TDS)
Deduction of Tax from the “Salary” [ Sec-192]
Deduction Of Tax From Interest On Securities [ Section-193]
Deduction Of Tax From Deemed Dividend [ Section-194]
Deduction Of Tax From Interest Other Than Interest On Securities [ Section 194A]
Winning From Lottery Or Crossword Puzzle Or Card game And Game Of Any Sort [Section 194B]
Winning From Horse Race [ Section 194BB]
Payment To Contractor And Sub-Contractor [ Section 194C]
Tax Deducted At Source From Insurance Commission [ Section 194D]
Payments To Non-Resident Sportsmen Or Sports Associations [ Section 194E]
Commission, Etc., On The Sale Of Lottery Tickets [Section 194G]
Commission Or Brokerage [ Section 194H]
Payment Of Rent [ Section 194 I ]
Fees For Professional Or Technical Services [ Section 194J]
Time Limit For Filling Return Of Income [ Section 139(1)]
When Return Of Loss Should Be Filed [ Section 139(3)]
Can Return Be Filied Beyond Time [ Section 139(4)]
Can Revised Return Be Filed [ Section 139(5)]
What Is A Defective Or Incomplete Return [ Section 139(9)]
Who Should  Sign The Return Of Income [ Section 140]
Permanent Account Number (PAN)
Why Every Person Needs Tax Planning ?
How is Tool of Tax Planning Exercised ?
Methods Of Tax Planning
Tax Avoidance
Tax Evasion
The Difference Between ‘Tax Planning’ And ‘Tax Management’
The Difference Between ‘Tax Avoidance’ And ‘Tax Evasion’.
Procedure for imposing Penalty [ Sec. 274]
Various Types Of Penalties In The Event Of Default.
Prosecutions
Salient Features Of FBT

Important Points Relating To Fringe Benefit Tax
Characteristics Of FBT
Classification Of Employer For FBT
Classification Of Not Employer For FBT
Direct Fringe Benefit
Deemed Fringe Benefit
Payment Of FBT To The Government
Filing Of FBT Return
Service Tax – Key Provisions At A Glance
Applicability Of Service Tax
Service Tax Rate
Registration Formalities
Payment & Refund Of Tax
Filling Or Returns
Assessments
Central Value Added Tax (Cenvat) Credit
Penalties & Prosecutions
Concept of VAT
Types of Dealers
General terminology used in VAT
Advantages of VAT over Sales Tax
VAT Rates
Computation of VAT and Profit
Items Covered in Indian VAT
Inter-State Sale
What are the objectives of CST Act ?
What are the conditions for CST Act to become applicable.
Rate of CST
Sale Price
CST Transactions Forms
Classification of Seller for TCS
Classification of Buyer for TCS
Goods and Transactions classified under TCS.
Certificate of TCS
TCS Exemptions
Payment of TCS to the Government
Electronic TCS (e-TCS)
Filing of TCS Returns
For removing any Asset, Books of account, documents etc. found during search in contravention of order served under [Section 132 (3)]
Removal, Concealment, transfer or delivery of property to avoid tax recovery [Section 276]
Default on the part of Liquidator [Section 276 (A)]
Failure to comply with provisions regarding transfer of immoveable property [Section 276 AB].
Failure to pay the tax deducted at source [Section 276 W]
Failure to pay the tax collected at source [Section 276 (BB)]
Willful attempt to evade Tax, Penalty, Interest etc. [Section 276 C (1)]
Failure to furnish return of income (Section 276 CC)
Failure to furnish return of income in search cases u/s 158 BC (Section 276 CCC)
Failure to produce accounts and documents [Section 276 (D)].
False Statement in Verification [Section 277]
Falsification of books of account or document, etc. [Section 277A]
Abetment in False Return (Section 278)
Punishment of Second and Subsequent Offences (Section 278 A)
Punishment not to be imposed in certain cases (Section 278 AA)
Offences by Companies (Section 278 B)
Offences by Hindu Undivided Families. (Section 278 C)
Presumption as to Assets, Books of Account etc. in certain cases. (Section 278 D)
Prosecution to be at the instance of commissioner [Section 279]
Meaning of Settlement Commisions
Setting Up Of Settlement Commission
Constitution Of Settlement Commission [Section 245B]
Jurisdiction And Powers Of Settlement Commission [Section 245BA]
Vice-Chairman To Act As Chairman [Section 245 BB]
Transfer Of Cases [Section 245 BC]
Decision To Be Majority [Section 245 BD]
Application For Settlement Of Cases [Section 245 C]
Calculation Of Additional Income-Tax [Section 245C (1A)]
Bar On Making Application [Section 245C (1E)]
Procedure On Receipt Of Application [Section 245D]
Payment Of Additional Income-Tax [Section 245D (2A)]
Power Of Settlement Commission To Order Provisional Attachment To Protect Revenue [Section 245DD (1)]
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