Income Tax Act — Section 7

7-11. Ins. by the Act No. 8 of 2023, w.e.f. 1-4-2023.

Penalty for false entry, etc., in books of account.

This Bare Act is a government source available in the public domain. It is being used strictly for educational purposes only.

271AAD. (1) Without prejudice to any other provisions of this Act, if during any proceeding under this Act, it is found that in the books of account maintained by any person there is—

(i) a false entry; or (ii) an omission of any entry which is relevant for computation of total income of such person, to evade tax

liability,

the Assessing Officer 12[or 13[the Joint Commissioner (Appeals) or] the Commissioner (Appeals),] may direct that such person shall pay by way of penalty a sum equal to the aggregate amount of such false or omitted entry. (2) Without prejudice to the provisions of sub-section (1), the Assessing Officer 12[or 13[the Joint Commissioner (Appeals) or] the Commissioner (Appeals)] may direct that any other person, who causes the person referred to in sub-section (1) in any manner to make a false entry or omits or causes to omit any entry referred to in that sub-section, shall pay by way of penalty a sum equal to the aggregate amount of such false or omitted entry. Explanation.—For the purposes of this section, "false entry" includes use or intention to use—

(a) forged or falsified documents such as a false invoice or, in general, a false piece of documentary

evidence; or

(b) invoice in respect of supply or receipt of goods or services or both issued by the person or any other

person without actual supply or receipt of such goods or services or both; or

(c) invoice in respect of supply or receipt of goods or services or both to or from a person who does not

exist.

_________________________________________________