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What is Power of Principal Commissioner or Commissioner to grant immunity from prosecution? What is Offences by companies? Section 278AB and 278B of Income Tax Act 1961

Power of Principal Commissioner or Commissioner to grant immunity from prosecution and Offences by companies are defined under section 278AB and 278B of Income Tax Act 1961. Provisions under these Sections are:

Section 278AB of Income Tax Act "Power of Principal Commissioner or Commissioner to grant immunity from prosecution"

Section 278AB. (1) A person may make an application to the 11[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 12[Principal Commissioner or] Commissioner under sub-section (1) shall not be made after institution of the prosecution proceedings after abatement.

 

(3) The [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 [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(4) The immunity granted to a person under sub-section (3) shall stand withdrawn, if such person fails to comply with any condition subject to which the immunity was granted and thereupon the provisions of this Act shall apply as if such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(5) The immunity granted to a person under sub-section (3) may, at any time, be withdrawn by the 12[Principal Commissioner or] Commissioner, if he is satisfied that such person had, in the course of any proceedings, after abatement, concealed any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.

Section 278B of Income Tax Act "Offences by companies"

Section 278B. (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.

(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 sub-section (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.

Income Tax Act 1961

What is Falsification of books of account or document? What is Abetment of false return? Section 277A and 278 of Income Tax Act 1961

What is Punishment for second and subsequent offences? What is Punishment not to be imposed in certain cases? Section 278A and 278AA of Income Tax Act 1961

What is Power of Principal Commissioner or Commissioner to grant immunity from prosecution? What is Offences by companies? Section 278AB and 278B of Income Tax Act 1961

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