Section 444 — Penalty for false entry, etc., in books of account
Old Act equivalent: Section 271AAC of IT Act 1961 Sub-part: A—Penalties
Statutory Text
- (1) The Assessing Officer or the Joint Commissioner (Appeals) or the Commissioner (Appeals), may impose a penalty equal to the aggregate amount of false or omitted entry, where during any proceeding under this Act, it is found that in the books of account maintained by any person there is—
(a) a false entry; or
(b) an omission of any entry which is relevant for computation of total income of such person, to evade tax liability. (2) Without prejudice to sub-section (1), the Assessing Officer or the Joint Commis sioner (Appeals) or the Commissioner (Appeals) may impose a penalty equal to the aggregated amount of false or omitted entry, on any other person, who causes the person referred to in the said sub-section in any manner to make a false entry or omits or causes to omit any entry referred to in that sub-section. (3) For the purposes of this section, the expression “false entry” includes use or intention to use—
(a) forged or falsified documents such as a false invoice or, in general, a false piece of documentary evidence; or
(b) invoice in respect of supply or receipt of goods or services or both issued by the person or any other person without actual supply or receipt of such goods or services, or both; or
(c) invoice in respect of supply or receipt of goods or services or both to or from a person who does not exist. Benefits to related persons.
Provisos
None.
Explanations
None.
Tables
None.
Key Structure
- Applies to: Person in whose case income referred to in section 95 is assessed.
- Conditions: Income assessed includes amount attributable to false/omitted entry in books of account.
- Time limits: None specified.
- Monetary limits: 60% of the sum payable.
- Exceptions: Not applicable if section 95 income already part of returned income and tax paid before end of relevant tax year.
Cross-References
None identified.
Amendment Notes
None noted from the extracted pages.