Income Tax Act

Official PDF pages 561–565

SOURCE PDF PAGE 561
( b )   the production of a copy of the entries certified by the income-tax authority
having custody of the records or other documents under its signature and
stating that it is a true copy of the original entries and that such original
entries are contained in the records or other documents in its custody.
Disclosure of particulars by public servants.
494 .   (1) A public servant, who furnishes any information or produces any
document in contravention of the provisions of section 258(3), shall be pun -
ishable with  
31
[ simple imprisonment up to one month, or with fine, or with both ] .
(2) No prosecution shall be instituted under this section except with the previous
sanction of the Central Government.
Special Courts.
495 .   (1) The Central Government, in consultation with the Chief Justice of the High
Court, may, for trial of offences punishable under this Chapter, by notification,
designate one or more courts
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of Judicial Magistrate of the first class as Special
Court for such area or areas, or for such cases or class or group of cases, as specified
in the notification.
(2) For the purposes of this section, the expression “High Court” means the High
Court of the State in which a Judicial Magistrate of first class designated as Special
Court was functioning immediately before such designation.
(3) While trying an offence under this Act, a Special Court shall also try an offence,
other than an offence referred to in sub-section (1), with which the accused may,
under the Bharatiya Nagarik Suraksha Sanhita, 2023 (46 of 2023), be charged at
the same trial.
Offences triable by Special Court.
496 .   (1) Irrespective of anything contained in the Bharatiya Nagarik Suraksha
Sanhita, 2023 (46 of 2023),—
( a )   the offences punishable under this Chapter shall be triable only by the
Special Court, if so designated, for the area or areas or for cases or class
or group of cases, as the case may be, in which the offence has been
committed;
( b )   a Special Court may, upon a complaint made by an authority authorised
in this behalf under this Act, take cognizance of the offence for which
the accused is committed for trial.
(2) For the purposes of sub-section (1)( a ), the court competent to try offences under
section 520,—
( a )   which has been designated as a Special Court under this section, shall
continue to try the offences before it or offences arising under this Act
after such designation;
( b )   which has not been designated as a Special Court, may continue to try
such offence pending before it till its disposal.
31.   Substituted for “imprisonment which may extend to six months, and shall also be liable to
fine” by the Finance Act, 2026, w.e.f.   1-4-2026 .

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Trial of offences as summons case.
497 .   The Special Court, irrespective of anything contained in the Bharatiya
Nagarik Suraksha Sanhita, 2023 (46 of 2023), shall try an offence under this
Chapter punishable with imprisonment not exceeding two years or with fine, or
with both, as a summons case, and the provisions of the Bharatiya Nagarik Surak -
sha Sanhita, 2023 as applicable in the case of trial of summons case, shall apply
accordingly.
Application of Bharatiya Nagarik Suraksha Sanhita, 2023 to proceedings
before Special Court.
498 .   (1) Save as otherwise provided in this Act, the provisions of Bharatiya
Nagarik Suraksha Sanhita, 2023 (46 of 2023) (including the provisions as
to bails or bonds), shall apply to the proceedings before a Special Court and the
person conducting the prosecution before the Special Court, shall be deemed to be
a Public Prosecutor.
(2) The Central Government may also appoint a Special Public Prosecutor for any
case or class or group of cases.
(3) A person shall not be qualified to be appointed as a Public Prosecutor or a Special
Public Prosecutor under this section unless he has been in practice as an advocate
for not less than seven years, requiring special knowledge of law.
(4) Every person appointed as a Public Prosecutor or a Special Public Prosecutor
under this section shall be deemed to be a Public Prosecutor within the meaning of
section 2(1)( v ) of the Bharatiya Nagarik Suraksha Sanhita, 2023 (46 of 2023), and
the provisions of that Sanhita shall have effect accordingly.
CHAPTER XXIII
MISCELLANEOUS
Certain transfers to be   void .
499.   (1) Where, during the pendency of any proceeding under this Act or after the
completion thereof, but before the service of notice by the Tax Recovery
Officer as per the procedure specified under section 413, any assessee creates a
charge on, or parts with the possession of, any of his assets in favour of any other
person, such charge or transfer shall be   void   as against any claim in respect of any
tax or any other sum payable by the assessee as a result of the completion of the
said proceeding or otherwise.
(2) The charge or transfer as referred to in sub-section (1) shall not be   void   if it is
made—
( a )   for adequate consideration and without notice of the pendency of such
proceeding or, as the case may be, without notice of such tax or other
sum payable by the assessee; or
( b )   with the previous permission of the Assessing Officer.
(3) This section applies to cases where the amount of tax or other sum payable or
likely to be payable exceeds   `   5000 and the assets charged or transferred exceed
`   10000 in value.

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(4) For the purposes of this section,––
( a )   “assets” means land, building, machinery, plant, shares, securities, fixed
deposits in banks, and virtual digital asset, to the extent to which any of
the said assets do not form part of the stock-in-trade of the business of
the assessee;
( b )   the modes of creating a charge on or parting with the possession of such
assets shall include sale, mortgage, gift, exchange or any other mode of
transfer.
Provisional attachment to protect revenue in certain cases.
500.   (1) Where, during the pendency of any proceeding for—
( a )   the assessment of any income or for the assessment or reassessment of
any income, which has escaped assessment; or
( b )   imposition of penalty under section 444, where the amount or aggregate
of amounts of penalty likely to be imposed under the said section exceeds
two crore rupees,
the Assessing Officer is of the opinion that for protecting the interests of the reve -
nue it is necessary so to do, he may, with the previous approval of the Competent
Authority by order in writing, attach provisionally any property belonging to the
assessee in the manner prescribed in section 413.
(2) Every provisional attachment under sub-section (1) shall cease to have effect after
the expiry of six months from the date of the order made under the said sub-section.
(3) The Competent Authority may, for reasons to be recorded in writing, extend the
period referred to in sub-section (2) and the total period of such extension shall not
exceed two years or sixty days after the date of order of assessment or reassessment,
whichever is later.
(4) Where the assessee furnishes a guarantee from a scheduled bank for an amount
not less than the fair market value of the property provisionally attached under
sub-section (1), the Assessing Officer shall, by an order in writing, revoke such
attachment.
(5) For the purposes of sub-section (4), where the Assessing Officer is satisfied that
a guarantee from a scheduled bank for an amount lower than the fair market value
of the property is sufficient to protect the interests of the revenue, he may accept
such guarantee and revoke the attachment.
(6) The Assessing Officer may, for determining the value of the property provision -
ally attached under sub-section (1), make a reference to the Valuation Officer, who
shall estimate the fair market value of the property in the manner provided under
section 269(3) to (7), and submit a report of such estimate to the Assessing Officer
within thirty days from the date of receipt of the reference.
(7) An order revoking the provisional attachment under sub-section (4) or (5) shall
be made—
( a )   within forty-five days from the date of receipt of the guarantee, where a
reference to the Valuation Officer has been made under sub-section (6);
or

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( b )   within fifteen days from the date of receipt of guarantee, in any other
case.
(8) Where a notice of demand specifying a sum payable is served upon the asses -
see and the assessee fails to pay that sum within the time specified, the Assessing
Officer may invoke the guarantee furnished under sub-section (4) or (5), wholly or
in part, to recover the amount.
(9) The Assessing Officer shall, in the interests of revenue, invoke the bank guaran -
tee, if the assessee fails to renew the guarantee referred to in sub-section (4) or (5),
or fails to furnish a new guarantee from a scheduled bank for an equal amount,
before fifteen days of its expiry.
(10) The amount realised by invoking the guarantee referred to in sub-section (4) or
(5) shall be adjusted against the existing demand which is payable by the assessee;
and the balance amount, if any, shall be deposited in the Personal Deposit Account
of the Principal Commissioner or Commissioner in the branch of, —
( a )   the Reserve Bank of India or the State Bank of India; or
( b )   any bank as may be appointed by the Reserve Bank of India as its agent
under section 45(1) of the Reserve Bank of India Act, 1934 (2 of 1934)
at the place where the office of the Principal Commissioner or Commis -
sioner is situated.
(11) Where the Assessing Officer is satisfied that the guarantee referred to in sub-sec -
tion (4) or (5) is not required any more to protect the interests of the revenue, he
shall release that guarantee forthwith.
(12) For the purposes of this section, “Competent Authority” means the Principal
Chief   Commissioner   or   Chief   Commissioner,   Principal   Commissioner   or
Commissioner, Principal Director General or Director General or Principal
Director or Director.
Service of notice, generally.
501 .   (1) The service of a notice, or summon, or requisition, or order, or any other
communication, under this Act (herein referred to as communication) may
be made by delivering or transmitting a copy thereof, to the person therein named—
( a )   by post or by such courier services as may be approved by the Board;
( b )   in such manner as provided under the Code of Civil Procedure, 1908 (5
of 1908) for the purposes of service of summons;
( c )   in the form of any electronic record as provided in Chapter IV of the
Information Technology Act, 2000 (21 of 2000); or
( d )   by any other means of transmission of documents, as may be prescribed.
(2) The Board may make rules providing for the addresses (including the address for
electronic mail or electronic mail message) to which the communication referred
to in sub-section (1) may be delivered or transmitted to the person therein named.
(3) For the purposes of this section, “electronic mail” and “electronic mail message”
means a message or information created or transmitted or received on a computer,
computer system, computer resource or communication device including attach -
ments in text, image, audio, video and any other electronic record, which may be
transmitted with the message.

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Authentication of notices and other documents.
502 .   (1) Where this Act requires a notice or other document to be issued by any
income-tax authority, such notice or other document shall be signed   and
issued in paper form or communicated in electronic form by that authority as per
such procedure, as may be prescribed.
(2) Every notice or other document to be issued, served or given under this Act by any
income-tax authority, shall be deemed to be authenticated, if the name and office of
a designated income-tax authority is printed, stamped or otherwise written thereon.
(3) For the purposes of this section, the expression “designated income-tax
authority” means any income-tax authority authorised by the Board to issue,
serve or give such notice or other document after authentication in the manner as
provided in sub-section (2).
Service of notice when family is disrupted or firm etc., is dissolved.
503 .   (1) After a finding of total partition has been recorded by the Assessing Officer
under section 315 for any Hindu family, notices under this Act in respect of the
income of the Hindu family shall be served on the person, who was its last manager,
or, if such person is dead, then on all adults who were members of the Hindu family
immediately before the partition.
(2) Where a firm or other association of persons is dissolved, notices under this Act
for the income of such firm or association may be served on any person, who was
a partner (not being a minor) or member of the association, immediately before
its dissolution.
Service of notice in case of discontinued business.
504 .   Where an assessment is to be made under section 320, the Assessing Officer
may serve on the—
( a )   person whose income is to be assessed; or
( b )   person who was a member of a firm or association of persons at the time
of its discontinuance, in the case of a firm or an association of persons;
or
( c )   principal officer, in the case of a company,
a notice containing all or any of the requirements which may be included in a notice
under section 268(1) and the provisions of this Act shall, so far as may be, apply
accordingly as if the notice were a notice issued under that section.
Submission of statement by a non-resident having liaison office.
505.   Every person, being a non-resident, having a liaison office in India set up as
per the guidelines issued by the Reserve Bank of India under the Foreign
Exchange Management Act, 1999 (42 of 1999), shall, in respect of its activities in
a tax year, prepare and deliver to the Assessing Officer having jurisdiction, a state -
ment, in such form and containing such particulars within such period, as may be
prescribed.