Section 5 - Amendment of section 279 - Income Tax (Amendment) Act, 1965

5. Amendment of section 279 In section 279 of the principal Act, (i) in sub-section (1), after the words offence under , the words, figures and letter section 275A or shall be inserted; (ii) after sub-section (1), the following sub-section shall be inserted, namely: (1A) A person shall not be proceeded against for an offence under section 277 in relation to the assessment for an assessment year in respect of which the penalty imposable upon him under clause (iii) of sub-section (1) of section 271 has been reduced or waived by an order under sub-section (4A) of that section. ; (iii) after sub-section (2), the following sub-section shall be inserted, namely: (3) Where any proceeding has been taken against any person under sub-section (1), any statement made or account or other document produced by such person before any of the Income-tax authorities specified in clauses (a), (b), (c), (d) and (e) of section 116 shall not be inadmissible as evidence for the purpose of such proceedings merely on the ground that such statement was made or such account or other document was produced in the belief that the penalty imposable would be reduced or waived under sub-section (4A) of section 271 or that the offence in respect of which such proceeding was taken would be compounded. .