Report No. 29
8. The Expenditure Tax Act, 1957 (29 of 1957)
Section 16.-Expenditure escaping assessment:
If the Expenditure-tax Officer.-
(a) has reason to believe that by reason of the omission or failure on the part of the assessee to make a return of his expenditure under section 13 for any assessment year, or to disclose fully and truly all material facts necessary for his assessment for that year, the expenditure chargeable to tax has escaped assessment for that year, whether by reason of under-assessment or assessment at too low a rate or otherwise; or
(b) has in consequence of any information in his possession reason to believe, notwithstanding that there has been no such omission or failure as is referred to in clause (a), that the expenditure chargeable to tax has escaped assessment for any assessment year, whether by reason of under-assessment or assessment at too low a rate or otherwise,
he may, in cases falling under clause (a) at any time within eight years and in cases falling under clause (b) at any time within four years of the end of that assessment year, serve on the assessee a notice containing all or any of the requirements which may be included in a notice under sub-section (2) of section 13, and may proceed to assess or reassess such expenditure, and the provisions of this Act shall, so far as may be, apply as if the notice had issued under that sub-section.
Section 17.-Penalty for concealment:
If the Expenditure Tax Officer, appellate Assistant Commissioner, Commissioner, or appellate Tribunal in the course of any proceedings under this Act is satisfied that any person-
(a) has without reasonable cause failed to furnish the return of his expenditure which he is required to furnish under sub-section (1) or sub-section (2) of section 13 or section 16, or has without reasonable cause failed to furnish it within the time allowed and in the manner required; or
(b) has without reasonable cause failed to comply with a notice under sub-section (2) or sub-section (4) of section 15; or
(c) has concealed the particulars of any expenditure or deliberately furnished inaccurate particulars thereof, he, may by order in writing direct that such person shall pay by way of penalty....
(1) If a person fails without reasonable cause-
(a) to furnish in due time any return mentioned in section 13;
(b) to produce, or cause to be produced on or before the date mentioned in any notice under sub-section (2) or sub-section (4) of section 15 such accounts, records and documents as are referred to in the notice;
(c) to furnish within the time specified any statement or information which such person is bound to furnish to the Expenditure-tax Officer under section 34; he shall, on conviction before a Magistrate, be punishable with fine which may extend to ten rupees for every day during which the default continues.
(2) If a person makes a statement in a verification mentioned in section 13, section 21, section 22, or section 24, 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 simple imprisonment which may extend to one year or with fine which may extend to one thousand rupees or with both.
(3) A person shall not be proceeded against for an offence under this section except at the instance of the Commissioner.
(4) The Commissioner may either before or after the institution of proceedings compound any such offence.
Explanation.-For the purposes of this section "Magistrate" means a Presidency Magistrate, a Magistrate of the first class, or a Magistrate of the second class specially empowered by the Central Government to try offences under this Act.