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'Prosecutions' Under Income Tax Department

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.

 
 
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