OFFENCES UNDER

INCOME TAX ACT, 1961

SOCIO-ECONOMIC OFFENCES SUBJECT

PRESENTATION TITLE
OFFENCES UNDER IT ACT, 1961
• The Income Tax Act, 1961 in India, prescribes various offences for non-compliance with its provisions. Some
of the common offences under the Income Tax Act, 1961 are:
i. Failure to file income tax return within the due date
ii. Under-reporting of income or over-reporting of deductions
iii. Non-maintenance of books of accounts
iv. Failure to deduct tax at source or short deduction of tax at source
v. Failure to deposit tax deducted at source
vi. Failure to collect tax at source or short collection of tax at source
vii. Non-payment of tax due
viii. Providing false information or evidence during any proceedings under the Act
ix. Failure to produce books of accounts, documents or furnish information as required by the Income Tax
authorities
x. Wilful attempt to evade tax, either by not disclosing income or by claiming excessive deductions
2 xi. Possessing, acquiring, transferring or accepting any property which is known to be proceeds of tax evasion
xii. Abetting or inducing another person to evade tax
 CHAPTER XXII OFFENCES AND PROSECUTION
PRESENTATION TITLE

• SECTION 275 A – Contravention of order made under sub–

section (3) of Section 132

Whoever contravenes any order referred to in 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.

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 • Section 132 – Search and Seizures
• Second Proviso to sub-sec (1):
• Provided that where any building, place, vessel, vehicle or aircraft referred to
in clause (i) is within the area of jurisdiction of any Principal Chief
Commissioner or Chief Commissioner or Principal Commissioner or
Commissioner, but such Principal Chief Commissioner or Chief
Commissioner or Principal Commissioner or Commissioner has no
jurisdiction over the person referred to in clause (a) or clause (b) or clause (c),
then, notwithstanding anything contained in section 120, it shall be competent
for him to exercise the powers under this sub-section in all cases where he has
reason to believe that any delay in getting the authorisation from the Principal
Chief Commissioner or Chief Commissioner or Principal Commissioner or
Commissioner having jurisdiction over such person may be prejudicial to the
interests of the revenue
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PRESENTATION TITLE

• Sub–section (3): The authorised officer may, where it is not practicable to

seize any such books of account, other documents, money, bullion, jewellery
or other valuable article or thing, for reasons other than those mentioned in
the second proviso to sub-section (1), serve an order on the owner or the
person who is in immediate possession or control thereof that he shall not
remove, part with or otherwise deal with it except with the previous
permission of such officer and such officer may take such steps as may be
necessary for ensuring compliance with this sub-section.

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 CONTD.
PRESENTATION TITLE

• SECTION 275 B - Failure to comply with the provisions of clause (iib) of

sub-section (1) of section 132.

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.
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 CONTD.
PRESENTATION TITLE

• SECTION 276 - Removal, concealment, transfer or delivery of property

to thwart tax recovery.

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
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to fine.
PRESENTATION TITLE
CONTD.
SECTION 276 A - Failure to comply with the provisions of sub-sections (1)
and (3) of section 178.
If a person—
(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
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less than six months.
PRESENTATION TITLE
CONTD.
• SECTION 276 AB - Failure to comply with the provisions of sections 269UC,
269UE, and 269UL.

Whoever 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
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months
PRESENTATION TITLE • SECTION 276 B - Failure to pay tax to the credit of Central Government
under Chapter XII-D or XVII-B.
If a person fails to—
(a) 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; or
(b) "pay tax or ensure payment of tax to the credit of the Central Government, as
required by or under––
(i) sub-section (2) of section 115-O;
(ii) the proviso to section 194B;
(iii) the first proviso to sub-section (1) of section 194R;
(iv) the proviso to sub-section (1) of section 194S; or]
(v) sub-section (2) of section 194BA,]
• he shall be punishable with rigorous imprisonment for a term which shall not be
10 less than three months but which may extend to seven years and with fine.
 • SECTION 276BB - Failure to pay the tax collected at source.
PRESENTATION TITLE
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.

• SECTION 276C -Wilful attempt to evade tax, etc.

(1) If a person wilfully attempts in any manner whatsoever to evade any tax, penalty or
interest chargeable or imposable, or under reports his income, 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 or tax on under-reported income
exceeds twenty-five 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;
11 (ii) in any other case, with rigorous imprisonment for a term which shall not be less
than three months but which may extend to two years and with fine.
 (2) If a person wilfully attempts in any manner whatsoever to evade the payment of any
PRESENTATION TITLE 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 two 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
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person to evade any tax, penalty or interest chargeable or imposable under this Act or the
payment thereof.