Understanding Offences and Prosecution in Legal Context

College:-I.B.(P.G)College,Panipat Affiliated To Kurukshetra University,Kurukshetra

Offences and Prosecution Offence means an act of non-compliance of the provisions of law.It may be deliberate or otherwise.A deliberate offence becomes a crime and the person committing such offence is called as accused.Such a man is said to have a criminal state of mind. Such a man with evil state of mind or guilty mind is liable to be penalised or punished.

Prosecution Prosecution means pursuing a suit against the defaulter assessee who is called as accused .To escape the prosecution proceedings,the defaulter assessee will have to prove that he had no evil mental state at the time of committing proceedings may end with imposing of fines or penalties or inflicting imprisonment or both to the accused.It depends upto the nature and seriousness of the default and the mental state of the assessee at the time of committing the default. the default.Prosecution

A person may be prosecuted on A/C of following lapses :- Contravention of order Sec.275(A) :- A person who contravenes any order shall be punishable with rigorous imprisonment which may extend upto 2 years and shall also be liable to fine. Failure to comply with the provisions of Sec.132(1):- If a person who is required to afford the authorised officer the necessary facility to inspect the books of A/C or other documents,fails to afford such facility to the authorised officer,he shall be punishable with rigorous imprisonment for a term which may extend to 2 years and shall also be liable to fine.[Sec.275(B)]

Contd. Removal,Concealment ,Transfer or delivery of property to avoid Tax RecoverySec.(276):- When removes,conceals,transfers or delivers an asset with the objective of getting recovery of tax,he shall be liable to rigorous imprisonment upto 2 years subject to a minimum of 6 months. a person fraudulently

Contd. Failure to pay the Tax Deducted At Source Sec.276(B):- If a person fails to pay to the credit of the Central Govt.,the TDS by him as required under the provisions of this Act,he shall be punishable with rigorous imprisonment for a term which shall not be less than 3 months but which may extend to 7 years and with fine. Failure to pay the Tax Collected At Source Sec.276(BB):- If a person fails to pay to the credit of the Central Govt.,the tax collected by him,he shall be punishable with rigorous imprisonment for a term which shall not be less than 3 months but which may extend to 7 years and with fine.

Contd. Wilful attempt to evade tax,penalty,interest etc. Sec.276(C)(1):- If a person intentionally tries to evade any tax,penalty or interest,he shall be liable to a punishment of rigorous imprisonment of 6 months to 7 years and fine if tax sought to be eveded exceeds Rs.25 lakh and 3 months to 2 years and fine if the amount of evasion is less than Rs.25 lakh. Failure to furnish return of income:- If a person wilfully or intentionally fails to furnish in due time the return of income which he is required he shall be punishable In a case where the amount of tax which would have been evaded if the failure had not been discovered,exceeds Rs.25 lakh with a rigorous imprisonment which shall not be less than 6 months but which may extend to 7 years and with fine. In other case ,with imprisonment which shall not be less than 3 months but which may extend to 2 years and with fine.

Contd. Failure to produce accounts and documents :- If a person wilfully fails to comply with the provisions of the notice regarding productions of A/Cs,books or other documents or wilfully fails to comply with a direction issued to him to get A/Cs audited by a C.A.,he shall be punishable with rigorous imprisonment which may extend upto 1 year and with fine. False Statement in Verfication :- A person making a false statement or delivering a false A/C or statement which he either knows or believes to be false or does not believe to be true,shall be punishable with rigorous imprisonment for 6 months to 7 years, if the amount of tax evaded would have been more than Rs. 25 lakh and 3 months to 2 years and fine in any other case.

Contd. Abetment in False Return :- If a person abets or induces in any manner another person to make and deliver a false A/c,statement or declaration relating to any income chargeable to tax or to commit an offence u/s 276C(1),he shall be punishable with rigorous imprisonment for a minimum term of 6 months and a maximum of 7 years,if the amount of tax evaded would have been more than Rs.25 lakh and 3 months to 2 years in any other case with fine. Punishment of Second and Subsequent Offences:- If a person convicted of an offence u/s 276B,276C(1),276CC,276D,277 or 278 is again convicted for an offence under any of these provisions,he shall be punishable for second and every subsequent offence with rigorous imprisonment of a term of not less than 6 months but which may extend to 7 years and with fine.

Contd. Offences by HUF :- For any offence committed by HUF,its Karta shall be liable for punishment and if any member was also involved,he shall also be punishable.But if Karta can prove that the offence was committed without his knowledge or that he has exercised all due diligence to present the commission of such offence he can escape punishment. Disclosure of information by public servants :- A public servant contravening the provisions of Sec.138(2) shall be punishable with imprisonment extending upto 6 months and shall be liable to fine.The prior approval of Central Govt. is essential before instituting any prosecution under this section.

Contd. Offences by Companies :- If an offence has been committed by a company,every person who at the time the offence was committed,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 punished accordingly.

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