Income Tax Act, 1961
Section 6: Subs. by Act 20 of 2015, s. 70, for Explanation 4 (w.e.f. 12016).
6. Subs. by Act 20 of 2015, s. 70, for Explanation 4 (w.e.f. 12016).
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B = amount of tax that would have been chargeable had the total income assessed as per the
general provisions been reduced by the amount of income in respect of which particulars have been
concealed or inaccurate particulars have been furnished;
C = amount of tax on the total income assessed as per the provisions contained in section
115JB or section 115JC;
D = amount of tax that would have been chargeable had the total income assessed as per the
provisions contained in section 115JB or section 115JC been reduced by the amount of income in
respect of which particulars have been concealed or inaccurate particulars have been furnished:
Provided that where the amount of income in respect of which particulars have been concealed or
inaccurate particulars have been furnished on any issue is considered both under the provisions
contained in section 115JB or section 115JC and under general provisions, such amount shall not be
reduced from total income assessed while determining the amount under item D:
Provided further that in a case where the provisions contained in section 115JB or section
115JC are not applicable, the item (C - D) in the formula shall be ignored;
(b) where in any case the amount of income in respect of which particulars have been concealed
or inaccurate particulars have been furnished has the effect of reducing the loss declared in the return
or converting that loss into income, the amount of tax sought to be evaded shall be determined in
accordance with the formula specified in clause (a) with the modification that the amount to be
determined for item (A - B) in that formula shall be the amount of tax that would have been
chargeable on the income in respect of which particulars have been concealed or inaccurate
particulars have been furnished had such income been the total income;
(c) where in any case to which Explanation 3 applies, the amount of tax sought to be evaded shall
be the tax on the total income assessed as reduced by the amount of advance tax, tax deducted at
source, tax collected at source and self-assessment tax paid before the issue of notice under section
148.]]
1[Explanation 5.—Where in the course of a 2[search initiated under section 132 before the 1st day of
June, 2007], the assessee is found to be the owner of any money, bullion, jewellery or other valuable
article or thing (hereafter in this Explanation referred to as assets) and the assessee claims that such assets
have been acquired by him by utilising (wholly or in part) his income,—
(a) for any previous year which has ended before the date of the search, but the return of income
for such year has not been furnished before the said date or, where such return has been furnished
before the said date, such income has not been declared therein ; or
(b) for any previous year which is to end on or after the date of the search,
then, notwithstanding that such income is declared by him in any return of income furnished on or after
the date of the search, he shall, for the purposes of imposition of a penalty under clause (c) of sub-section
(1) of this section, be deemed to have concealed the particulars of his income or furnished inaccurate
particulars of such income, 3[unless,—
(1) such income is, or the transactions resulting in such income are recorded,—
(i) in a case falling under clause (a), before the date of the search; and
(ii) in a case falling under clause (b), on or before such date,
where in any case the amount of income in respect of which particulars have been concealed
or inaccurate particulars have been furnished has the effect of reducing the loss declared in the return
or converting that loss into income, the amount of tax sought to be evaded shall be determined in
accordance with the formula specified in clause
with the modification that the amount to be
determined for item (A - B) in that formula shall be the amount of tax that would have been
chargeable on the income in respect of which particulars have been concealed or inaccurate
particulars have been furnished had such income been the total income;
where in any case to which Explanation 3 applies, the amount of tax sought to be evaded shall
be the tax on the total income assessed as reduced by the amount of advance tax, tax deducted at
source, tax collected at source and self-assessment tax paid before the issue of notice under section
148.]]
1[Explanation 5.—Where in the course of a 2[search initiated under section 132 before the 1st day of
June, 2007], the assessee is found to be the owner of any money, bullion, jewellery or other valuable
article or thing (hereafter in this Explanation referred to as assets) and the assessee claims that such assets
have been acquired by him by utilising (wholly or in part) his income,—
for any previous year which has ended before the date of the search, but the return of income
for such year has not been furnished before the said date or, where such return has been furnished
before the said date, such income has not been declared therein ; or
for any previous year which is to end on or after the date of the search,
then, notwithstanding that such income is declared by him in any return of income furnished on or after
the date of the search, he shall, for the purposes of imposition of a penalty under clause
of sub-section
of this section, be deemed to have concealed the particulars of his income or furnished inaccurate
particulars of such income, 3[unless,—
such income is, or the transactions resulting in such income are recorded,—
in a case falling under clause
in a case falling under clause