Income Tax Act, 2025
Section 22: The proviso omitted by Act 3 of 1989, s. 50 (w.e.f. 11989).
22. The proviso omitted by Act 3 of 1989, s. 50 (w.e.f. 11989).
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(B) such person offers an explanation which he is 1[not able to substantiate and fails to prove that
such explanation is bona fide and that all the facts relating to the same and material to the
computation of his total income have been disclosed by him,]
then, the amount added or disallowed in computing the total income of such person as a result thereof
shall, for the purposes of clause (c) of this sub-section, be deemed to represent the income in respect of
which particulars have been concealed.
2* * * * *
Explanation 2.—Where the source of any receipt, deposit, outgoing or investment in any assessment
year is claimed by any person to be an amount which had been added in computing the income or
deducted in computing the loss in the assessment of such person for any earlier assessment year or years
but in respect of which no penalty under clause (iii) of this sub-section had been levied, that part of the
amount so added or deducted in such earlier assessment year immediately preceding the year in which the
receipt, deposit, outgoing or investment appears (such earlier assessment year hereafter in
this Explanation referred to as the first preceding year) which is sufficient to cover the amount
represented by such receipt, deposit or outgoing or value of such investment (such amount or value
hereafter in this Explanation referred to as the utilised amount) shall be treated as the income of the
assessee, particulars of which had been concealed or inaccurate particulars of which had been furnished
for the first preceding year; and where the amount so added or deducted in the first preceding year is not
sufficient to cover the utilised amount, that part of the amount so added or deducted in the year
immediately preceding the first preceding year which is sufficient to cover such part of the utilised
amount as is not so covered shall be treated to be the income of the assessee, particulars of which had
been concealed or inaccurate particulars of which had been furnished for the year immediately preceding
the first preceding year and so on, until the entire utilised amount is covered by the amounts so added or
deducted in such earlier assessment years.
3[Explanation 3.—Where any person 4*** fails, without reasonable cause, to furnish within the period
specified in sub-section (1) of section 153 a return of his income which he is required to furnish
under section 139 in respect of any assessment year commencing on or after the 1st day of April, 1989,
and until the expiry of the period aforesaid, no notice has been issued to him under clause (i) of subsection (1) of section 142 or section 148 and the Assessing Officer or the 5*** Commissioner (Appeals) is
satisfied that in respect of such assessment year such person has taxable income, then, such person shall,
for the purposes of clause (c) of this sub-section, be deemed to have concealed the particulars of his
income in respect of such assessment year, notwithstanding that such person furnishes a return of his
income at any time after the expiry of the period aforesaid in pursuance of a notice under section 148.]
6[Explanation 4.—For the purposes of clause (iii) of this sub-section,—
(a) the amount of tax sought to be evaded shall be determined in accordance with the following
formula—
(A - B) + (C - D)
where,
A = amount of tax on the total income assessed as per the provisions other than the provisions
contained in section 115Jb or section 115JC (herein called general provisions);
such person offers an explanation which he is 1[not able to substantiate and fails to prove that
such explanation is bona fide and that all the facts relating to the same and material to the
computation of his total income have been disclosed by him,]
then, the amount added or disallowed in computing the total income of such person as a result thereof
shall, for the purposes of clause
of this sub-section, be deemed to represent the income in respect of
which particulars have been concealed.
2* * * * *
Explanation 2.—Where the source of any receipt, deposit, outgoing or investment in any assessment
year is claimed by any person to be an amount which had been added in computing the income or
deducted in computing the loss in the assessment of such person for any earlier assessment year or years
but in respect of which no penalty under clause
of this sub-section had been levied, that part of the
amount so added or deducted in such earlier assessment year immediately preceding the year in which the
receipt, deposit, outgoing or investment appears (such earlier assessment year hereafter in
this Explanation referred to as the first preceding year) which is sufficient to cover the amount
represented by such receipt, deposit or outgoing or value of such investment (such amount or value
hereafter in this Explanation referred to as the utilised amount) shall be treated as the income of the
assessee, particulars of which had been concealed or inaccurate particulars of which had been furnished
for the first preceding year; and where the amount so added or deducted in the first preceding year is not
sufficient to cover the utilised amount, that part of the amount so added or deducted in the year
immediately preceding the first preceding year which is sufficient to cover such part of the utilised
amount as is not so covered shall be treated to be the income of the assessee, particulars of which had
been concealed or inaccurate particulars of which had been furnished for the year immediately preceding
the first preceding year and so on, until the entire utilised amount is covered by the amounts so added or
deducted in such earlier assessment years.
3[Explanation 3.—Where any person 4*** fails, without reasonable cause, to furnish within the period
specified in sub-section
of section 153 a return of his income which he is required to furnish
under section 139 in respect of any assessment year commencing on or after the 1st day of April, 1989,
and until the expiry of the period aforesaid, no notice has been issued to him under clause
of subsection
of section 142 or section 148 and the Assessing Officer or the 5*** Commissioner
is
satisfied that in respect of such assessment year such person has taxable income, then, such person shall,
for the purposes of clause
of this sub-section, be deemed to have concealed the particulars of his
income in respect of such assessment year, notwithstanding that such person furnishes a return of his
income at any time after the expiry of the period aforesaid in pursuance of a notice under section 148.]
6[Explanation 4.—For the purposes of clause
of this sub-section,—
the amount of tax sought to be evaded shall be determined in accordance with the following
formula—
(A - B) + (C - D)
where,
A = amount of tax on the total income assessed as per the provisions other than the provisions
contained in section 115Jb or section 115JC (herein called general provisions);