OFFENCES AND PROSECUTIONS UNDER PMLA, PBPT ACT, BLACK MONEY ACT & INCOME TAX ACT & INTERPLAY OF LAWS BY AMIT KHEMKA ADVOCATE SUPREME COURT OF INDIA & HIGH COURT OF DELHI
The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act,2015
49.Punishment for failure to furnish return in relation to foreign income and asset (Black Money Act) If a person, being a resident other than not ordinarily resident in India within the meaning of clause ( 6 ) of section 6 of the Income- tax Act, who at any time during the previous year, ( and wilfully fails to furnish in due time the return of income which he is required to furnish under sub-section ( 1 ) of section 139 of that Act, he shall be punishable with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven 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 of the Income-tax Act if the return is furnished by him before the expiry of the assessment year.
50. Punishment for failure to furnish in return of income, any information about an asset (including financial interest in any entity) located outside India (Black Money Act) If any person, being a resident other than not ordinarily resident in India within the meaning of clause ( 6 ) of section 6 of the Income-tax Act, who has furnished the return of income for any previous year under sub-section ( 1 ) or sub-section ( 4 ) or sub- section ( 5 ) of section 139 of that Act, wilfully , he shall be punishable with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine.
51. Punishment for wilful attempt to evade tax (Black Money Act) (1) If a person, being a resident other than not ordinarily resident in India within the meaning of clause ( 6 ) of section 6 of the Income-tax Act, wilfully attempts in any manner whatsoever to , penalty or interest chargeable or imposable under this Act, he shall be punishable with rigorous imprisonment for a term which shall but which may extend and with fine
(2) If a person wilfully attempts in any manner whatsoever , 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 but which may extend to and shall, in the discretion of the court, also be liable to fine.
(3) 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.
276C. Wilful attempt to evade tax, etc (Income Tax Act) B (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, Punishment: If Tax evaded is more than Rs. 2.5 Lacs: Minimum 6 Months Upto 7 years & fine In other cases : Minimum 3 months Upto 2 years & fine
- Explanation : Willful attempt to evade tax for the purpose of the section shall include a case where any person: has in his possession or control books or other documents (i) containing ; or makes or causes to be made any (ii) or documents; or (iii) willfully ; or (iv) causes any other circumstance which will have the effect of enabling such person to evade any tax, penalty or interest.
463. Forgery (IPC) Whoever makes any false documents or false electronic record or part of a document or electronic record, with intent to cause damage or injury, to the public or to any person, or to support any claim or title, or to cause any person to part with property, or to enter into any express or implied contract, or with intent to commit fraud or that fraud may be committed, commits forgery.
Section 471 (IPC) Using as genuine a forged document or electronic record: Whoever fraudulently or dishonestly uses as genuine any document or electronic record, which he knows or has reason to believe to be a forged document or electronic record, shall be punished in the same manner as if he had forged such document or electronic record.
Section 276C (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 but which may extend and shall, in the discretion of the court, also be liable to .
Whether the Assessing Officer has to wait till the completion of the assessment for initiating the prosecution under these Sections?
For sub-section (1) Evasion of Tax Prosecution can be proposed or initiated even before the completion of assessment proceedings (Tip Top Plastic Ind. vs ITO) ( 1995 214 ITR 778 Mad) Sub-section (2) Evade to pay It can only start after the assessment is complete and tax, penalty or interest has become due (Vijay Chandra Chandulal Shah Vs State of Gujrat)
52. Punishment for false statement in verification (Black Money Act) If a person, 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 with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine.
277. False statement in verification, etc (Income tax Act) A If a person under this Act or under any rule made thereunder, and which he either knows or believes to be false, or does not believe to be true, he shall be punishable, Punishment: If Tax evaded is more than Rs. 2.5 Lacs: Min. 6 Months Upto 7 years & fine In other cases : Min. 3 months Upto 3 years & fine
S. 277A Falsification of books of accounts etc. (Income tax Act) If any person (hereafter in this section referred to as the first person) willfully and with intent (hereafter in this section referred to as the second person) chargeable and imposable under this Act, and which the first person either knows to be false or does not believe to be true, relevant to or useful in any proceedings against the first person or the second person, under this Act, the first person shall be punishable with rigorous imprisonment for a term which shall but which may extend to . Explanation -For the purposes of establishing the charge under this section, it shall not be necessary to prove that the second person has actually evaded any tax, penalty or interest chargeable or imposable under this Act.
53. Punishment for abetment (Black Money Act) If a person abets or induces in any manner another person to make and deliver an account or a statement or declaration relating to tax payable under this Act 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 51, he shall be punishable with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine.
278. Abetment of false returns (Income Tax act) 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 under sub-section (1) of section 276C, he shall be punishable, Punishment: If Tax evaded is more than Rs. 2.5 Lacs: Minimum 6 Months Upto 7 years & fine In other cases : Minimum 3 months Upto 3 years & fine
55. [ Prosecution to be at instance of Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General or Principal Commissioner or Commissioner . ] (Black Money act) (1) A person shall not be proceeded against for an offence under section 49 to section 53 (both inclusive) except with the sanction of the Principal Commissioner or Commissioner or the Commissioner (Appeals), as the case may be.
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