Prosecution for falsification of books of account or document, etc. [Section 277A]
- Nature of Default
Prosecution under this provision is initiated when the following conditions are met:
A person makes or causes to make a statement or entry;
The statement or entry is false, and the person knew or believed it to be false;
It appears in books of account or documents relevant to any proceeding under the Act;
It is made wilfully and with intent;
It enables another person to evade tax, interest, or penalty chargeable under the Act.
Unlike Section 278, it is not necessary to prove that tax evasion actually occurred for prosecution under Section 277A.
- Period of Imprisonment
Punishable with rigorous imprisonment of 3 months to 2 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Immunity from prosecution may be granted by the Principal Commissioner/Commissioner, but it will be withdrawn if the assessee fails to meet the required conditions and according to CBDT guidelines, the offence under this provision is compoundable.