Amendment of section 273

Section 31 of the Finance Act, 1978 deals with amendment of section 273. Amendment of section 273. 31. In the Income-tax Act, with effect from the 1st day of June, 1978, section 273 shall be renumbered as sub section (2) thereof and— (1) before sub-section (2) as so renumbered, the following sub-section shall be inserted, namely :— " (1) If the Income-tax Officer, in the The Act was enacted on 12 May 1978.

Amendment of section 273.

31. In the Income-tax Act, with effect from the 1st day of June, 1978, section 273 shall be renumbered as sub section (2) thereof and—

(1) before sub-section (2) as so renumbered, the following sub-section shall be inserted, namely :—

" (1) If the Income-tax Officer, in the course ef 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 without reasonable cause failed to furnish a statement of the advance tax payable by him in accordance with the provisions of clause (a) of sub-section (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 immediately preceding the assessment year under the provisions of Chapter XVII-C 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.";

(2) in sub-section (2) as so renumbered,—

(a) for clause (a), the following clause shall be substituted, namely :—

" (a) has furnished under sub-section (7) or sub-section (2) or subsection (3) or sub-section (5) of section 209A, or under sub-section (1) or subsection (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 " ;

(b) in clause (aa), after the words " has furnished", the words, brackets, figures and letter " under sub-section (4) of section 209A or " shall be inserted ;

(c) in clause (b), for the words, brackets and figures " sub-section (3) of section 212 ", the words, brackets, letters and figures " clause (b) of sub-section (1) of section 209A " shall be substituted ;

(d) in clause (c), for the words, brackets, figures and letter " subsection (3A) of section 212 ", the words, brackets, figures and letters " sub-section (4) of section 209A or sub-section (3A) of section 212" shall be substituted;

(e) for sub-clause (2) of clause (i), the following sub-clause shall be substituted, namely :—

" (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," ;

(f) for clause (iii), the following clause shall be substituted, namely:—

"(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 has 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. ";

(g) in the Explanation, for the words, brackets, figures and letter " proviso to sub-section (3A) of section 212 ", the words, brackets, figures and letters " proviso to sub-section (4) of section 209A or, as the case may be, proviso to sub-section (3A) of section 212 " shall be substituted.

[Finance Act, 1978]

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Section 31, The Finance Act, 1978 (Act 19 of 1978).