48. Chapter not in derogation of any other law or any other provision of this Act.—(1) The
provisions of this Chapter shall be in addition to, and not in derogation of, the provisions of any other law
providing for prosecution for offences thereunder.
(2) The provisions of this Chapter shall be independent of any order under this Act that may be made,
or has not been made, on any person and it shall be no defence that the order has not been made on
account of time limitation or for any other reason.
49. Punishment for failure to furnish return in relation to foreign income and asset.—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, held any asset (including
financial interest in any entity) located outside India as a beneficial owner or otherwise, or was a
beneficiary of such asset or had income from a source outside India 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.—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 fails to furnish in such return any information relating
to an asset (including financial interest in any entity) located outside India, held by him, as a beneficial
owner or otherwise or in which he was a beneficiary, at any time during such previous year, or disclose
any income from a source outside India, 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.—(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 evade any tax, penalty or interest chargeable or imposable under
this Act, he shall be punishable with rigorous imprisonment for a term which shall not be less than three
years but which may extend to ten years and with fine.
(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 not be
less than three months but which may extend to three years 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
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(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.
52. Punishment for false statement in verification.—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.
53. Punishment for abetment.—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.
54. Presumption as to culpable mental state.—(1) In any prosecution for any offence under this Act
which requires a culpable mental state on the part of the accused, the court shall presume the existence of
such mental state but it shall be a defence for the accused to prove the fact that he had no such mental
state with respect to the act charged as an offence in that prosecution.
Explanation.—In this sub-section, ―culpable mental state‖ includes intention, motive or knowledge of
a fact or belief in, or reason to believe, a fact.
(2) For the purposes of this section, a fact is said to be proved only when the court believes it to exist
beyond reasonable doubt and not merely when its existence is established by a preponderance of
probability.
55. Prosecution to be at instance of Principal Chief Commissioner or Chief Commissioner or
Principal Commissioner or Commissioner.—(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.
(2) The Principal Chief Commissioner or the Chief Commissioner may issue such instructions, or
directions, to the tax authorities referred to in sub-section (1) as he may think fit for the institution of
proceedings under this section.
(3) The power of the Board to issue orders, instructions or directions under this Act shall include the
power to issue orders, instructions or directions (including instructions or directions to obtain its previous
approval) to other tax authorities for the proper initiation of proceedings of offences (including an
authorisation to file and pursue complaints by one or more Inspectors of tax) under this section.
56. Offences by companies.—(1) 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.
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(2) Nothing in sub-section (1) shall render any such person liable to any punishment if he proves that
the offence was committed without his knowledge or that he had exercised all due diligence to prevent the
commission of such offence.
(3) Notwithstanding anything in sub-section (1), where an offence under this Act has been committed
by a company and it is proved that the offence has been committed with the consent or connivance of, or
is attributable to any neglect on the part of, any director, manager, secretary or other officer of the
company, such director, manager, secretary or other officer shall also be deemed to be guilty of that
offence and shall be liable to be proceeded against and punished accordingly.
(4) Where an offence under this Act has been committed by a person, being a company, and the
punishment for such offence is imprisonment and fine, then, without prejudice to sub-section (1) or
sub-section (3), such company shall be punished with fine and every person, referred to in sub-section (1),
or the director, manager, secretary or other officer of the company referred to in sub-section (3), shall be
liable to be proceeded against and punished in accordance with the provisions of this Act.
(5) In this section—
(a) ―company‖ means a body corporate, and includes —
(i) an unincorporated body;
(ii) a Hindu undivided family;
(b) ―director‖, in relation to —
(i) an unincorporated body, means a participant in the body;
(ii) a Hindu undivided family, means an adult member of the family; and
(iii) a company, means a whole-time director, or where there is no such director, any other
director or manager or officer, who is in charge of the affairs of the company.
57. Proof of entries in records or documents.—(1) The entries in the records, or other documents,
in the custody of a tax authority shall be admitted in evidence in any proceeding for the prosecution of
any person for an offence under this Chapter.
(2) The entries referred to in sub-section (1) may be proved by the production of—
(a) the records or other documents (containing such entries) in the custody of the tax authority; or
(b) a copy of the entries certified by that authority under its signature, as true copy of the original
entries contained in the records or other documents in its custody.
58. Punishment for second and subsequent offences.—If any person convicted of an offence under
section 49 to section 53 (both inclusive) is again convicted of an offence under any of the aforesaid
provisions, he shall be punishable for the second and every subsequent offence with rigorous
imprisonment for a term which shall not be less than three years, but which may extend to ten years and
with fine which shall not be less than five lakh rupees, but which may extend to one crore rupees.