Prosecution for making false statements in verification [Section 277]
- Nature of Default
Prosecution shall be initiated where a person:
Makes a false statement in any verification under the Act, or
Delivers an account or statement which is false and which he knows or believes to be false, or does not believe to be true.
Such offence is classified as non-cognizable under section 279A, i.e., police cannot act without prior permission of the court.
- Period of Imprisonment
Where the tax sought to be evaded exceeds Rs. 25 lakh: rigorous imprisonment of 6 months to 7 years and with fine;
In other cases: rigorous imprisonment of 3 months to 2 years and with fine.
- Prosecution for Subsequent Offences
For second and subsequent convictions under this provision, the punishment shall be rigorous imprisonment of 6 months to 7 years and with fine.
- Relaxation from Prosecution
Immunity from prosecution may be granted by the Principal Commissioner/Commissioner, but it will be withdrawn if the assessee fails to meet the required conditions and according to CBDT guidelines, the offence under this provision is compoundable.