Income Tax Act, 2025
Section 5: Subs. by Act 54 of 2003, s. 7, for “one and one-fourth per cent.” (w.e.f. 82003).
5. Subs. by Act 54 of 2003, s. 7, for “one and one-fourth per cent.” (w.e.f. 82003).
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(b) where no return has been furnished, on the date of completion of assessment under clause (c)
of section 158BC.
(2) The Assessing Officer or the Commissioner (Appeals) in the course of any proceedings under this
Chapter, may direct that a person shall pay by way of penalty a sum which shall not be less than the
amount of tax leviable but which shall not exceed three times the amount of tax so leviable in respect of
the undisclosed income determined by the Assessing Officer under clause (c) of section 158BC:
Provided that no order imposing penalty shall be made in respect of a person if—
(i) such person has furnished a return under clause (a) of section 158BC;
(ii) the tax payable on the basis of such return has been paid or, if the assets seized consist of
money, the assessee offers the money so seized to be adjusted against the tax payable;
(iii) evidence of tax paid is furnished along with the return; and
(iv) an appeal is not filed against the assessment of that part of income which is shown in the
return:
Provided further that the provisions of the preceding proviso shall not apply where the
undisclosed income determined by the Assessing Officer is in excess of the income shown in the
return and in such cases the penalty shall be imposed on that portion of undisclosed income
determined which is in excess of the amount of undisclosed income shown in the return.
(3) No order imposing a penalty under sub-section (2) shall be made,—
(a) unless an assessee has been given a reasonable opportunity of being heard;
(b) by the 1[Assistant Commissioner or Deputy Commissioner] or the 2[Assistant Director or
Deputy Director], as the case may be, where the amount of penalty exceeds twenty thousand rupees
except with the previous approval of the 3[Joint Commissioner] or the 4[Joint Director], as the case
may be;
(c) in a case where the assessment is the subject-matter of an appeal to the Commissioner
(Appeals) under section 246 5[or section 246A] or an appeal to the Appellate Tribunal under section
253, after the expiry of the financial year in which the proceedings, in the course of which action for
the imposition of penalty has been initiated, are completed, or six months from the end of the month
in which the order of the Commissioner (Appeals) or, as the case may be, the Appellate Tribunal is
received by the 6[Principal Chief Commissioner or Chief Commissioner] or the 7[Principal
Commissioner or Commissioner], whichever period expires later;
(d) in a case where the assessment is the subject-matter of revision under section 263, after the
expiry of six months from the end of the month in which such order of revision is passed;
where no return has been furnished, on the date of completion of assessment under clause
of section 158BC.
The Assessing Officer or the Commissioner
in the course of any proceedings under this
Chapter, may direct that a person shall pay by way of penalty a sum which shall not be less than the
amount of tax leviable but which shall not exceed three times the amount of tax so leviable in respect of
the undisclosed income determined by the Assessing Officer under clause
of section 158BC:
Provided that no order imposing penalty shall be made in respect of a person if—
such person has furnished a return under clause
of section 158BC;
the tax payable on the basis of such return has been paid or, if the assets seized consist of
money, the assessee offers the money so seized to be adjusted against the tax payable;
evidence of tax paid is furnished along with the return; and
an appeal is not filed against the assessment of that part of income which is shown in the
return:
Provided further that the provisions of the preceding proviso shall not apply where the
undisclosed income determined by the Assessing Officer is in excess of the income shown in the
return and in such cases the penalty shall be imposed on that portion of undisclosed income
determined which is in excess of the amount of undisclosed income shown in the return.
No order imposing a penalty under sub-section
shall be made,—
unless an assessee has been given a reasonable opportunity of being heard;
by the 1[Assistant Commissioner or Deputy Commissioner] or the 2[Assistant Director or
Deputy Director], as the case may be, where the amount of penalty exceeds twenty thousand rupees
except with the previous approval of the 3[Joint Commissioner] or the 4[Joint Director], as the case
may be;
in a case where the assessment is the subject-matter of an appeal to the Commissioner
under section 246 5[or section 246A] or an appeal to the Appellate Tribunal under section
253, after the expiry of the financial year in which the proceedings, in the course of which action for
the imposition of penalty has been initiated, are completed, or six months from the end of the month
in which the order of the Commissioner
or, as the case may be, the Appellate Tribunal is
received by the 6[Principal Chief Commissioner or Chief Commissioner] or the 7[Principal
Commissioner or Commissioner], whichever period expires later;
in a case where the assessment is the subject-matter of revision under section 263, after the
expiry of six months from the end of the month in which such order of revision is passed;