Report No. 29

10. The Income-Tax Act, 1961 (43 of 1961)

Section 276.-Failure to make payments or deliver returns or statements or allow inspection:

If a person fails without reasonable cause or excuse-

(a) to grant inspection or allow copies to be taken in accordance with the provisions of section 134;

(b) to furnish in due time any of the returns or statements mentioned in section 133, sub-section (2) of section 139, section 206, section 285 or section 286;

(c) to produce, or cause to be produced, on or before the date mentioned in any notice under sub-section (1) of section 142, such accounts and documents as are referred to in the notice;

(d) to deduct and pay tax as required by the provisions of Chapter XVIIB or under sub-section (2) of section 226; or

(e) to furnish a certificate required by section 203, he shall be punishable with fine which may extend to ten rupees for every day during which the default continues.

As to penalties imposable by Income Tax Officers, see sections 270 to 274 Income Tax Act, 1961.

Section 277.-False statement in declaration, (As amended by section 41 of the Finance Act, 1964-Act 5 of 1964):

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 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 less than six months.

Section 278.-Abetment of false return, etc. (As amended by the Finance Act, 1964 section 42):

If a person abets or induces in any manner another person to make and deliver an account, statement or declaration relating to any income chargeable to tax which is false and which he either knows to be false or does not believe to be true, 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 less than six months.

Section 281.-Transfers to defraud revenue void:

Where, during the pendency of any proceeding under this Act, any assessee creates a charge on or parts with the possession by way of sale, mortgage, exchange or any other mode of transfer whatsoever, of any of his assets in favour of any other person with the intention to defraud the revenue, such charge or transfer shall be void as against any claim in respect of any tax of any other sum payable by the assessee as a result of the completion of the said proceeding:

Provided that such charge or transfer shall not be void if made for valuable consideration and without notice of the pendency of the proceeding under this Act.