Income-tax Act,1961
Act No : 43
Section :
False estimate of, or failure to pay, advance tax5
4[273. False estimate of, or failure to pay, advance tax5 6[(1) If the 7 [Assessing] Officer, in the course of any proceedings in connection with the regular assessment for any assessment year, is satisfied that any assessee- (a) has furnished under clause (a) of sub-section (1) of section 209A a statement of the advance tax payable by him which he knew or had reason to believe to be untrue, or (b) has 8[* * *] failed to furnish a statement of the advance tax payable by him in accordance with the provisions of clause (a) of subsection (1) of section 209A, he may direct that such person shall, in addition to the amount of tax, if any, payable by him, pay by way of penalty a sum- (i) which, in the case referred to in clause (a), shall not be less than ten per cent but shall not exceed one and a half times the amount by which the tax actually paid during the financial year ----------------------------------------------------------------------- 1 Prior to the omission, section 272B, as amended by Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 10-9-1986, read as under: "272B. Penalty for failure to comply with the provisions of section 139A.-(1) If a person fails to comply with the provisions of section 139A, he shall, on an order passed by the Assessing Officer, pay, by way of penalty, a sum which may extend to five hundred rupees. (2) No order under sub-section (1) shall be passed unless the person on whom the penalty is proposed to be imposed is given an opportunity of being heard in the matter." 2 Inserted by the Finance Act, 1987, w.e.f. 1-6-1987. 3 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 4 Substituted by the Finance Act, 1969, w.e.f. 1-4-1970. 5 See Board's Letters F. No. 281/8/86-IT (Inv 111), dated 14-2-1986 and 284/41/72-IT (Inv), dated 30-8-1972, reproduced in Bharat's Direct Taxes Circulars, 1991 edn., P. 1902. 6 Inserted by the Finance Act, 1978, w.e.f. 1-6-1978. 7 Substituted for 'Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 8 The words ", without reasonable cause," omitted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 10-9- 1986. ------------------------------------------------------------------------ 1.778 immediately preceding the assessment year under the provisions of Chapter XVIIC falls short of- (1) seventy-five per cent of the assessed tax as defined in subsection (5) of section 215, or (2) the amount which would have been payable by way of advance tax if the assessee had furnished a correct and complete statement in. accordance with the provisions of clause (a) of sub-section (1) of section 209A, whichever is less; (ii) which, in the case referred to in clause (b), shall not be less than ten per cent but shall not exceed one and a half times of seventy five per cent of the assessed tax as defined in sub-section (5) of section 215]: 1[Provided that in the case of an assessee, being a company, the provisions of this sub-section shall have effect as if for the words "seventy-five per cent", at both the places where they occur, the words "eighty-three and one-third per cent" had been substituted.] 2[(2)] If the 3[Assessing] Officer, in the course of any proceedings in connection with the regular assessment for the assessment year commencing on the 1st day of April, 1970, or any subsequent assessment year, is satisfied that any assessee- 4[ (a) has furnished under sub-section (1) or sub-section (2) or subsection (3) or sub-section (5) of section 209A, or under sub-section (1) or sub-section (2) of section 212, an estimate of the advance tax payable by him which he knew or had reason to believe to be untrue, or] 5[(aa) has furnished 6[under sub-section (4) of section 209A or] under sub-section (3A) of section 212 an estimate of the advance tax payable by him which he knew or had reason to believe to be untrue, or] (b) has 7[* * *] failed to furnish an estimate of the advance tax payable by him in accordance with the provisions of 8[clause (b) of subsection (1) of section 209A], or (c) has 9[* * *] failed to furnish an estimate of the advance tax payable ----------------------------------------------------------------------- 1 Inserted by the Finance (No. 2) Act, 1980, w.e.f. 1-9-1980. 2 Inserted by the Finance Act, 1978, w.e.f. 1-6-1978. 3 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 4 Substituted by the Finance Act, 1978, w.e.f. 1-6-1978. Earlier, it was amended by the Finance (No. 2) Act, 1977, w.e.f. 1-9-1977. 5 Inserted by the Finance (No. 2) Act, 1977, w.e.f. 1-9-1977. 6 Inserted by the Finance Act, 1978, w.e.f. 1-6-1978. 7 The word ", without reasonable cause" omitted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 10-9- 1986. 8 Substituted for 'sub-section (3) of section 212" by the Finance Act, 1978, w.e.f. 1-6-1978. 9 The word ", without reasonable cause,' omitted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 10-9- 1986. ----------------------------------------------------------------------- 1.779 by him in accordance with the provisions of 1[sub-section (4) of section 209A or] sub-section (3A) of section 212, he may direct that such person shall, in addition to the amount of tax, if any, payable by him, pay by way of penalty a sum- (i) which, in the case referred to in clause (a), shall not be less than ten per cent but shall not exceed one and a half times the amount by which the tax actually paid during the financial year immediately preceding the assessment year under the provisions of Chapter XVIIC falls short of- (1) seventy-five per cent of the assessed tax as defined in subsection (5) of section 215, or. 2[ (2) where a statement under clause (a) of sub- section (1) of section 209A was furnished by the assessee or where a notice under section 210 was issued to the assessee, the amount payable under such statement or, as the case may be, such notice,] whichever is less; 3[(ia) which, in the case referred to in clause (aa), shall not be less than ten per cent but shall not exceed one and a half times the amount by which the tax actually paid during the financial year immediately preceding the assessment year under the provisions of Chapter XVIIC falls short of seventy-five per cent of the assessed tax as defined in sub-section (5) of section 215;] (ii) which, in the case referred to in clause (b), shall not be less than ten per cent but shall not exceed one and a half times of seventy five per cent of the assessed tax as defined in sub-section (5) of section 215; and 4[(iii) which, in the case referred to in clause (c), shall not be less than ten per cent but shall not exceed one and a half times the amount by which- (a) where the assessee had sent a statement under clause (a), or an estimate under clause (b) of sub- section (1) of section 209A, or an estimate in lieu of a statement under sub-section (2) of that section, the tax payable in accordance with such statement or estimate; or (b) where the assessee was required to pay advance tax in accordance with the notice issued to him under section 210, the tax payable under such notice, falls short of seventy-five per cent of the assessed tax as defined in sub-section (5) of section 215:]] 5[Provided that in the case of an assessee, being a company, the provisions of this sub-section shall have effect as if for the words "seventy-five per cent", wherever they occur, the words "eighty-three and one-third per cent" had been substituted. ----------------------------------------------------------------------- 1 Inserted by the Finance Act, 1978, w.e.f. 1-6-1978. 2 Substituted by the Finance Act, 1978, w.e.f. 1-6-1978. 3 Inserted by the Finance (No. 2) Act, 1977, w.e.f. 1-9-1977. 4 Substituted by the Finance Act, 1978, w.e.f. 1-6-1978. 5 Inserted by the Finance (No. 2) Act, 1980, w.e.f. 1-9-1980. ----------------------------------------------------------------------- 1.780 1[Explanation 2[1 ].-For the purposes of clause (ia) the amount paid by the assessee on or before the date extended by the 3[Chief Commissioner or Commissioner] under the 4[first] 5[proviso to sub- section (4) of section 209A or, as the case may be,] 6[first] 'proviso to sub-section (3A) of section 212 shall, where the date so extended falls beyond the financial year immediately preceding the assessment year, also be regarded as tax actually paid during that financial year.] 7[Explanation 2.-When the person liable to penalty is a registered firm or an unregistered firm which has been assessed under clause (b) of section 183, then, notwithstanding anything contained in the other provisions of this Act, the penalty imposable under this section shall be the same amount as would be imposable on that firm if that firm were an unregistered firm.] 8[(3) The provisions of this section shall apply to and in relation to any assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, and references in- this section to the other provisions of this Act shall be construed as references to those provisions as for the time being in force and applicable to the relevant assessment year.] 9[273A. Power to reduce or waive penalty, etc., in certain cases 10 (1) Notwithstanding anything contained in this Act, the 11[12[* * *] Commissioner] may, in his discretion, whether on his own motion or otherwise,- 13[(1) Omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.] (ii) reduce or waive the amount of penalty imposed or imposable on a person under clause (iii) of sub-section (1) of section 271; 14[or] ---------------------------------------------------------------------- 1 Inserted by the Finance (No. 2) Act, 1977, w.e.f. 1-9-1977. 2 Inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4- 1985. 3 Substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 4 Inserted by the Finance Act, 1981, w.e.f. 1-4-1981. 5 Inserted by the Finance Act, 1978, w.e.f. 1-6-1978. 6 Inserted by the Finance Act, 1981, w.e.f. 1-4-1981. 7 Inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4- 1985. 8 Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. 9 Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10- 1975. 10 See Instruction Nos. 1142, dated 25-1-1978 and 1417, dated 29-9- 1981 and Ministry of Law, Justice and Company Affairs' advice, dated 7-8-1981. 11 The words "Chief Commissioner or Commissioner" substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1- 4-1988. 12 The words 'Chief Commissioner or" omitted by the Finance Act, 1993, w.e.f. 1-6-1993. 13 Prior to the omission, clause (i) read as under: "(i) reduce or waive the amount of penalty imposed or imposable on a person under clause (i) of sub-section (1) of section 271 for failure, without reasonable cause, to furnish the return of total income which he was required to furnish under sub-section (1) of section 139; or" 14 Superfluous, should be deleted. ----------------------------------------------------------------------- 1.781 1[(iii) Omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.] if he is satisfied that such person- 2[(a) Omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.] (b) in the case referred to in clause (ii), has, prior to the detection by the 3[Assessing] Officer, of the concealment of particulars of income or of the inaccuracy of particulars furnished in respect of such income, voluntarily and in good faith, made full and true disclosure of such particulars; 4[(C) Omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.] and also has, 5[in the case referred to in clause (b)], cooperated in any enquiry relating to the assessment of his income and has either paid or made satisfactory arrangements for the payment of any tax or interest payable in consequence of an order passed under this Act in respect of the relevant assessment year. Explanation 6[* * *].-For the purposes of this sub-section, a person shall be deemed to have made full and true disclosure of his income or of the particulars relating thereto in any case where the excess of income assessed over the income returned is of such a nature as not to attract the provisions of clause (c) of sub-section (1) of section 271. 7[Omitted by the Finance Act, 1985, w.e.f. 24-5-1985.] ---------------------------------------------------------------------- 1 Prior to the omission, clause (iii) read as under: "(iii) reduce or waive the amount of interest paid or payable under sub-section (8) of section 139 or section 215 or section 217 or the penalty imposed or imposable under section 273," 2 Prior to the omission, clause (a) read as under: "(a) in the case referred to in clause (i), has, prior to the issue of a notice to him under sub-section (2) of section 139, voluntarily and in good faith made full and true disclosure of his income;" 3 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 4 Prior to the omission, clause (c) read as under: "(c) in the cases referred to in clause (iii), has, prior to the issue of a notice to him under sub-section (2) of section 139, or where no such notice, has been issued and the period for the issue of such notice has expired, prior to the issue of notice to him under section 148, voluntarily and in good faith made full and true disclosure of his income and has paid the tax on the income so disclosed," 5 Substituted for "in all the cases referred to in clauses (a), (b) and (c)" by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4- 1989. 6 The figure "1" omitted by the Finance Act, 1985, w.e.f. 24-5- 1985. It was inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984. 7 Prior to the omission, Explanation 2, as inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984, read as under: "Explanation 2.-Where any books of account, other documents, money, bullion, jewellery or other valuable article or thing belonging to a person are seized under section 132 and within fifteen days of such seizure, the person makes full and true disclosure of his income to the Commissioner, such person shall for the purposes of clause (b) of this sub-section, be deemed to have made, prior to the detection by the Income-tax Officer of the concealment of particulars of income or of the -> -> ----------------------------------------------------------------------- 1.782 (2) Notwithstanding anything contained in sub-section (1),- 1[(a) Omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f 1-4-1989.]] (b) if in a case falling under clause (c) of sub-section (1) of section 271, the amount of income in respect of which the penalty is imposed or imposable for the relevant assessment year, or, where such disclosure relates to more than one assessment year,. the aggregate amount of such income for those years, exceeds a sum of five hundred thousand rupees, no order reducing or waiving the penalty under sub-section (1) shall be made by 2[the Commissioner except with the previous approval of the Chief Commissioner- or Director General, as the case may be]. (3) Where an order has been made under sub-section (1) in favour of any person, whether such order relates to one or more assessment years, he shall not be entitled to any relief under this section in relation to any other assessment year at any time after the making of such order: 3[Provided that where an order has been made in favour of any person under sub-section (1) on or before the 24th day of July, 1991, such person shall be entitled to further relief only once in relation to other assessment year or years if he makes an application to the income-tax authority referred to in sub-section (4) at any time before the 1st day of April, 1992.] (4) Without prejudice to the powers conferred on him by any other provision of this Act, the 4[5[* * *] Commissioner] may, on an application made in this behalf by an assessee, and after recording his reasons for so doing, reduce or waive the amount of any penalty payable by the assessee under this Act, or stay; or compound any proceeding for the recovery of any such amount, if he is satisfied that- (i) to do otherwise would cause genuine hardship to the assessee, having regard to the circumstances of the case; and (ii) the assessee has cooperated. in any inquiry relating to the assessment or any proceeding for the recovery of any amount due from him: ---------------------------------------------------------------------- -> inaccuracy of particulars furnished in respect of such income, voluntarily and in good faith, a disclosure of such particulars." 1 Prior to the omission, clause (a), as amended by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984, read as under: "(a) if in a case the penalty imposed or imposable under clause (i) of sub-section (1) of section 271 or the minimum penalty imposable under section 273 for the relevant assessment year, or, where such disclosure relates to more than one assessment year, the aggregate of the penalty imposed or imposable under the said clause or of the minimum penalty imposable under the said section for those years, exceeds a sum of one hundred thousand rupees, or" 2 Substituted for "the Chief Commissioner or Commissioner except with the previous approval of the Board" by the Finance Act, 1993, w.e.f. 1-6-1993. Earlier, the italicised words were substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1- 4-1988. 3 Inserted by the Finance (No. 2) Act, 1991, w.e.f. 27-9-1991. 4 The words "Chief Commissioner or Commissioner" substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1- 4-1988. 5 The words "Chief Commissioner or' omitted by the Finance Act, 1993, w.e.f. 1-6-1993. ----------------------------------------------------------------------- 1.783 1 [Provided that where the amount of any penalty payable under this Act or, where such application relates to more than one penalty, the aggregate amount of such penalties exceeds one hundred thousand rupees, no order reducing or waiving the amount or compounding any proceeding for its recovery under this sub-section shall be made by 2[the Commissioner except with the previous approval of the Chief Commissioner or Director General, as the case may be]. (5) Every order made under this section shall be final and shall not be called into question by any court or any other authority.] 3[(6) The provisions of this section 4[as they stood immediately before their amendment by the Direct Tax Laws (Amendment) Act, 1989] shall apply to and in relation to any assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, and references in this section to the other provisions of this Act shall be construed as references to those provisions as for the time being in force and applicable to the relevant assessment year.] 5[(7) Notwithstanding anything contained in sub-section (6), the provisions of sub-section (1), sub-section (2) or, as the case may be, subsection (4) [as they stood immediately before their amendment by the Direct Tax Laws (Amendment) Act, 1989 (3 of 1989)], shall apply in the case of reduction or waiver of penalty or interest in relation to any assessment for the assessment year commencing on the 1st day of April, 1988 or any earlier assessment year, with the modifications that the power under the said sub-section (1) shall be exercisable only by the Commissioner and instead of the previous approval of the Board, the Commissioner shall obtain the previous approval of the Chief Commissioner or Director General, as the case may be, while dealing with such case.] 1[273B. Penalty not to be imposed in certain cases Notwithstanding anything contained in the provisions of 2[clause (b) of sub-section (1) of] 3[section 271, section 271A, section 271B 4[ section 271BB,] section 271C, section 271D, section 271E, clause (c) or clause (d) of sub-section (1) or sub-section (2) of section 272A, sub-section (1) of section 272AA] or 5[sub-section (1) of section 272BB or] clause (b) of subsection (1) or clause (b) or clause (c) of sub-section (2) of section 273, no penalty shall be imposable on the pet-son or the assessee, as the case may be, for any failure referred to in the said provisions if he proves that there was reasonable cause for the said failure.]
