Income Tax Act, 2025
Section 9: Ins. by Act 20 of 2002, s. 101 (w.e.f. 12002).
9. Ins. by Act 20 of 2002, s. 101 (w.e.f. 12002).
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1[(1A) Where any penalty is imposable by virtue of Explanation 2 to sub-section (1), proceedings for
the imposition of such penalty may be initiated notwithstanding that any proceedings under this Act in the
course of which such penalty proceedings could have been initiated under sub-section (1) have been
completed.]
2[(1B) Where any amount is added or disallowed in computing the total income or loss of an assessee
in any order of assessment or reassessment and the said order contains a direction for initiation of penalty
proceedings under clause (c) of sub-section (1), such an order of assessment or reassessment shall be
deemed to constitute satisfaction of the Assessing Officer for initiation of the penalty proceedings under
the said clause (c).]
(2) When the person liable to penalty is a registered firm or an unregistered firm which has been
assessed under 3[clause (b) of section 183,] then notwithstanding anything contained in the other
provisions of this Act, the penalty imposable under sub-section (1) shall be the same amount as would be
imposable on that firm if that firm were an unregistered firm.
4* * * * *
(4) If the 5[Assessing Officer] or the 6[*** Commissioner (Appeals)] in the course of any proceedings
under this Act, is satisfied that the profits of a registered firm have been distributed otherwise than in
accordance with the shares of the partners as shown in the instrument of partnership on the basis of which
the firm has been registered under this Act, and that any partner has thereby returned his income below its
real amount, he may direct that such partner shall, in addition to the tax, if any, payable by him, pay by
way of penalty a sum not exceeding one and a half times the amount of tax which has been avoided, or
would have been avoided if the income returned by such partner had been accepted as his correct income;
and no refund or other adjustment shall be claimable by any other partner by reason of such direction.
7* * * * *
8[(5) The provisions of this section as they stood immediately before their amendment by the Direct
Tax Laws (Amendment) Act, 1989 (3 of 1989) shall apply to and in relation to any assessment for the
assessment year commencing on the 1st day of April, 1988, or any earlier assessment year and references
in this section to the other provisions of this Act shall be construed as references to those provisions as for
the time being in force and applicable to the relevant assessment year.]
9[(6) Any reference in this section to the income shall be construed as a reference to the income or
fringe benefits, as the case may be, and the provisions of this section shall, as far as may be, apply in
relation to any assessment in respect of fringe benefits also.]
10[(7) The provisions of this section shall not apply to and in relation to any assessment for the
assessment year commencing on or after the 1st day of April, 2017.]
Where any penalty is imposable by virtue of Explanation 2 to sub-section
have been
completed.]
2[
Where any amount is added or disallowed in computing the total income or loss of an assessee
in any order of assessment or reassessment and the said order contains a direction for initiation of penalty
proceedings under clause
of sub-section
When the person liable to penalty is a registered firm or an unregistered firm which has been
assessed under 3[clause
of section 183,] then notwithstanding anything contained in the other
provisions of this Act, the penalty imposable under sub-section
shall be the same amount as would be
imposable on that firm if that firm were an unregistered firm.
4* * * * *
If the 5[Assessing Officer] or the 6[*** Commissioner
The provisions of this section as they stood immediately before their amendment by the Direct
Tax Laws
Act, 1989 (3 of 1989) shall apply to and in relation to any assessment for the
assessment year commencing on the 1st day of April, 1988, or any earlier assessment year and references
in this section to the other provisions of this Act shall be construed as references to those provisions as for
the time being in force and applicable to the relevant assessment year.]
9[
Any reference in this section to the income shall be construed as a reference to the income or
fringe benefits, as the case may be, and the provisions of this section shall, as far as may be, apply in
relation to any assessment in respect of fringe benefits also.]
10[
The provisions of this section shall not apply to and in relation to any assessment for the
assessment year commencing on or after the 1st day of April, 2017.]