law: The Income-Tax Act, 1961
  278. Abetment of false return, etc.-
  If a person abets or induces in any manner another person to make and deliver an account or a statement or declaration relating to 6[any income or any fringe benefits chargeable to tax] 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 276C, he shall be punishable,-
  (i) in a case where the amount of tax, penalty or interest which would have been evaded, if the declaration, account or statement had been accepted as true, or which is wilfully attempted to be evaded, exceeds 7[twenty-five hundred thousand rupees], with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine;
  (ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to 8[two years] and with fine.
  6. Subs. by Act 18 of 2005, s. 63, for "any income chargeable to tax" (w.e.f. 1-4-2006).
  7. Subs. by Act 23 of 2012, s. 110, for "one hundred thousand rupees" (w.e.f. 1-7-2012).
  8. Subs. by s. 110, ibid., for "three years" (w.e.f. 1-7-2012)
  278A. Punishment for second and subsequent offences.-
  If any person convicted of an offence under section 276B or sub-section (1) of section 276C or section 276CC 1[or section 276DD] 2[or section 276E] or section 277 or section 278 is again convicted of an offence under any of the aforesaid provisions, he shall be punishable for the second and for every subsequent offence with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine.
  1. Ins. by Act 32 of 1985, s. 35 (w.e.f. 24-5-1985).
  2. Ins. by Act 38 of 1981, s. 5 (w.e.f. 11-7-1981).
  3[278AA. Punishment not to be imposed in certain cases.-
  Notwithstanding anything contained in the provisions of section 276A, section 276AB, 4[or section 276B,] no person shall be punishable for any failure referred to in the said provisions if he proves that there was reasonable cause for such failure.]
  3. Ins. by Act 46 of 1986, s. 28 (w.e.f. 10-9-1986).
  4. Subs. by Act 4 of 1988, s. 120, for "section 276B, section 276DD or section 276E" (w.e.f. 1-4-1989).
  5[278AB. Power of 6[Principal Commissioner or Commissioner] to grant immunity from prosecution.-
  (1) A person may make an application to the 6[Principal Commissioner or Commissioner] for granting immunity from prosecution, if he has made an application for settlement under section 245C and the proceedings for settlement have abated under section 245HA.
  (2) The application to the 6[Principal Commissioner or Commissioner] under sub-section (1) shall not be made after institution of the prosecution proceedings after abatement.
  (3) The 6[Principal Commissioner or Commissioner] may, subject to such conditions as he may think fit to impose, grant to the person immunity from prosecution for any offence under this Act, if he is satisfied that the person has, after the abatement, co-operated with the income-tax authority in the proceedings before him and has made a full and true disclosure of his income and the manner in which such income has been derived:
  Provided that where the application for settlement under section 245C had been made before the 1st day of June, 2007, the 6[Principal Commissioner or Commissioner] may grant immunity from prosecution for any offence under this Act or under the Indian Penal Code (45 of 1860) or under any other Central Act for the time being in force.
  (4) The immunity granted to a person under sub-section (3) shall stand withdrawn, if such person fails to comply with any condition subject to which the immunity was granted and thereupon the provisions of this Act shall apply as if such immunity had not been granted.
  (5) The immunity granted to a person under sub-section (3) may, at any time, be withdrawn by the 6[Principal Commissioner or Commissioner], if he is satisfied that such person had, in the course of any proceedings, after abatement, concealed any particulars material to the assessment from the income-tax authority or had given false evidence, and thereupon such person may be tried for the offence with respect to which the immunity was granted or for any other offence of which he appears to have been guilty in connection with the proceedings.]
  5. Ins. by Act 18 of 2008, s. 54 (w.e.f. 1-4-2008).
  6. Subs. by Act 25 of 2014, s. 4, for "Commissioner" (w.e.f. 1-6-2013).
  278B. 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:
  Provided that nothing contained in this sub-section 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.
  (2) Notwithstanding anything contained 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.
  1[(3) 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 the provisions contained in sub-section (1) or sub-section (2), 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 subsection (2), shall be liable to be proceeded against and punished in accordance with the provisions of this Act.]
  Explanation.-For the purposes of this section,-
  (a) "company" means a body corporate, and includes-
  (i) a firm; and
  (ii) an association of persons or a body of individuals whether incorporated or not; and
  (b) "director", in relation to-
  (i) a firm, means a partner in the firm;
  (ii) any association of persons or a body of individuals, means any member controlling the affairs thereof.
  1. Ins. by Act 23 of 2004, s. 61 (w.e.f. 1-10-2004).
  278C. Offences by Hindu undivided families.-
  (1) Where an offence under this Act has been committed by a Hindu undivided family, the karta thereof shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
  Provided that nothing contained in this sub-section shall render the karta 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.
  (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act, has been committed by a Hindu undivided family 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 member of the Hindu undivided family, such member shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
  278D. Presumption as to assets, books of account, etc., in certain cases.-
  (1) Where during the course of any search made under section 132, any money, bullion, jewellery or other valuable article or thing (hereafter in this section referred to as the assets) or any books of account or other documents has or have been found in the possession or control of any person and such assets or books of account or other documents are tendered by the prosecution in evidence against such person or against such person and the person referred to in section 278 for an offence under this Act, the provisions of sub-section (4A) of section 132shall, so far as may be, apply in relation to such assets or books of account or other documents.
  (2) Where any assets or books of account or other documents taken into custody, from the possession or control of any person, by the officer or authority referred to in clause (a) or clause (b) or clause (c), as the case may be, of sub-section (1) of section 132A are delivered to the requisitioning officer under subsection (2) of that section and such assets, books of account or other documents are tendered by the prosecution in evidence against such person or against such person and the person referred to in section 278 for an offence under this Act, the provisions of sub-section (4A) of section 132 shall, so far as may be, apply in relation to such assets or books of account or other documents.]
  1[278E. 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.]
  1. Ins. by Act 46 of 1986, s. 29 (w.e.f. 10-9-1986).