Prosecution to be at instance of PCCIT/CCIT/PCIT/CIT & Compounding an Offence - Section 279 - Income Tax - Ready Reckoner - Income Tax

Prosecution to be at instance of PCCIT/CCIT/PCIT/CIT Compounding an Offence - Section 279 A person shall not be proceeded against for an offence under Section 275A [ Contravention of order made under section 132(3) ] section 275B [ Failure to comply with the provisions of clause (iib) of section 132(1) ], section 276 [ Removal, concealment, transfer or delivery of property to thwart tax recovery ], section 276A [ Failure to comply with the provisions of section 178(1) and (3) ], section 276B [ Failure to pay tax to the credit of Central Government under Chapter XII-D or XVII-B ], section 276BB [ Failure to pay the tax collected at source ], Section 276C [ Wllful attempt to evade tax, etc. ], Section 276CC [ Failure to furnish returns of income ], section 276D [ Failure to produce accounts and documents ], section 277 [ False statement in verification, etc. ], section 277A [ Falsification of books of account or document, etc. ] or section 278 [ Abetment of false return, etc. ] except with the previous sanction of the Principal Commissioner or Commissioner or Joint Commissioner (Appeals) [Amended by FA, 2023] or Commissioner (Appeals) or the appropriate authority. The Principal Chief Commissioner or Chief Commissioner or, as the case may be, Principal Director General or Director General may issue such instructions or directions to the aforesaid income-tax authorities as he may deem fit for institution of proceedings under section 279(1). appropriate authority shall have the same meaning as in clause ( c ) of section 269UA appropriate authority means an authority constituted u/s 269UB to perform the functions of an appropriate authority under this Chapter; No prosecution if penalty is reduced or waived [Section 279(1A)] A person shall not be proceeded against for an offence under section 276C or section 277 in relation to the assessment for an assessment year in respect of which the penalty imposed or imposable on him under section 270A or section 271(1)(iii) has been reduced or waived by an order under section 273A . Compounding an offence [Section 279(2)] The PCCIT/CCIT/PDGIT/DGIT may either before or after the institution of proceedings be compound any such offence. Where any proceeding has been taken against any person under section 279(1), any statement made or account or other document produced by such person before any of the income-tax authorities 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 section 273A or that the offence in respect of which such proceeding was taken would be compounded. The Central Government may make a scheme, by notification in the Official Gazette, for the purposes of granting sanction under Section 279(1) or compounding under Section 279(2) [Section 279(4)] The Central Government may make a scheme, by notification in the Official Gazette, for the purposes of granting sanction under Section 279(1) or compounding under Section 279(2), so as to impart greater efficiency, transparency and accountability by- (a) eliminating the interface between the income-tax authority and the assessee or any other person to the extent technologically feasible; (b) optimising utilisation of the resources through economies of scale and functional specialisation; (c) introducing a team-based sanction to proceed against, or for compounding of, an offence, with dynamic jurisdiction. To give effect of the scheme, certain provisions of this Act shall not apply or shall apply with such exceptions, etc. [Section 279(5)] The Central Government may, for the purpose of giving effect to the scheme made under section 279(4), by notification in the Official Gazette, direct that any of the provisions of this Act shall not apply or shall apply with such exceptions, modifications and adaptations as may be specified in the notification: Provided that no direction shall be issued after the 31st day of March, 2022 .