Income Tax Act

Official PDF pages 576–580

SOURCE PDF PAGE 576
authority, he may be directed by such authority that he shall henceforth
be disqualified from representing an assessee under sub-section (1).
(6) Every order or direction under sub-section (4)( b ) or (5)( b ) shall be subject to
the following conditions:—
( a )   no such order or direction shall be made against any person unless he
has been given a reasonable opportunity of being heard;
( b )   any person against whom such an order or direction is made may, within
one month of the said order or direction, appeal to the Board to have the
order or direction cancelled; and
( c )   no such order or direction shall take effect until one month has passed
from the making thereof, or, if an appeal has been filed, until the disposal
of the appeal.
(7) A person disqualified to represent an assessee by virtue of section 61(3) of the
Indian Income-tax Act, 1922 (11 of 1922) or section 288(5) of the Income-tax Act,
1961 (43 of 1961) shall be disqualified to represent an assessee under sub-section (1).
(8) For the purposes of this section, the expression “relative”, in relation to an
individual, means—
( a )   spouse of the individual;
( b )   brother or sister of the individual;
( c )   brother or sister of the spouse of the individual;
( d )   any lineal ascendant (maternal or paternal) or descendant of the indi -
vidual;
( e )   any lineal ascendant (maternal or paternal) or descendant of the spouse
of the individual;
( f )   spouse of a person referred to in clause ( b ), ( c ), ( d ) or ( e );
( g )   any lineal descendant of a brother or sister of either the individual or
the spouse of the individual.
Rounding off of amount of total income, or amount payable or refundable.
516 .   The amount of total income computed or any amount payable or refundable
under this Act, shall be rounded off to the nearest multiple of   `   10 ignoring
any part of a rupee consisting of paise and thereafter if such amount is not a multiple
of ten, then—
( a )   such amount shall be increased to the next higher amount which is a
multiple of ten, if the last figure in that amount is five or more; or
( b )   such amount shall be reduced to the next lower amount which is a mul -
tiple of ten, if the last figure is less than five,
and the amount so rounded off shall be deemed to be the total income of the assessee
or the amount payable or refundable, as the case may be, under this Act.
Receipt to be given.
517.   A receipt shall be given for any money paid or recovered under this Act.

──────────

SOURCE PDF PAGE 577
Indemnity.
518.   Every person deducting, retaining, or paying any tax in pursuance of this Act
in respect of an income belonging to another person shall be indemnified for
the deduction, retention, or payment thereof.
Power to tender immunity from prosecution.
519.   (1) The Central Government may, if it is of the opinion that with a view to
obtaining the evidence of any person appearing to have been directly or
indirectly concerned in or privy to the concealment of income or to the evasion of
payment of tax on income it is necessary or expedient so to do, for reasons to be
recorded in writing, tender to such person,—
( a )   immunity from prosecution for any offence under this Act or under the
Bharatiya Nyaya Sanhita, 2023 (45 of 2023), or under any other Central
Act in force; and
( b )   from imposition of any penalty under this Act on condition of his mak -
ing a full and true disclosure of the whole circumstances relating to the
concealment of income or evasion of payment of tax on income.
(2) A tender of immunity made to, and accepted by, the person concerned, shall, to
the extent to which the immunity extends, render him immune from prosecution
for any offence in respect of which the tender was made, or from the imposition of
any penalty under this Act.
(3) If it appears to the Central Government that any person to whom immunity has
been tendered under this section––
( a )   has not complied with the conditions on which the tender was made; or
( b )   is wilfully concealing anything; or
( c )   is giving false evidence,
the Central Government may record a finding to that effect, and thereupon the
immunity shall be deemed to have been withdrawn.
(4) The person whose immunity has been withdrawn under sub-section (3) may be
tried for the offence in respect of which the tender of immunity was made or for
any other offence of which he appears to have been guilty in connection with the
same matter and shall also become liable to imposition of any penalty under this
Act to which he would otherwise have been liable.
Cognizance of offences.
520.   No court inferior to that of a Judicial Magistrate of the first class shall try
any offence under this Act.
Probation of Offenders Act, 1958 and section 401 of Bharatiya Nagarik Sura-
ksha Sanhita, 2023, not to apply.
521.   The provisions of the Probation of Offenders Act, 1958 (20 of 1958) and
section 401 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (46 of 2023)   shall
not apply to a person convicted of an offence under this Act unless that person is
under eighteen years of age.

──────────

SOURCE PDF PAGE 578
32
[Circumstances in which return of income, assessment, approvals, etc., not
to be invalid.
522 .   (1) No return of income, assessment, notice, summons or other proceed-
ings relating thereto, furnished or made or issued or taken, or purported to have
been furnished or made or issued or taken, in pursuance of any of the provisions of this
Act, shall be invalid or shall be deemed to be invalid merely by reason of any mistake,
defect or omission in such return of income, assessment, notice, summons or other
proceeding, if such return of income, assessment, notice, summons or other proceeding
is in substance and effect in conformity with or according to the intent and purposes
of this Act.
(2) No assessment under any of the provisions of this Act shall be invalid on the
ground of any mistake, defect or omission in respect of quoting of a computer gener -
ated Document Identification Number, if the assessment order is referenced by such
number in any manner.
(3) Irrespective of anything contained in this Act, any approval given by an income-tax
authority in relation to any assessment, reassessment or recomputation proceedings
shall be deemed to be administrative and supervisory in nature and, shall not be invalid
by reason of any insufficiency of the reasons recorded or by reason of any defect in
the form or manner of its authentication or communication including whether digital
signature have been appended to such approval or not, where such approval has been
granted electronically. ]
Notice deemed to be valid in certain circumstances.
523.   (1) Where an assessee has appeared in any proceeding or co-operated in
any inquiry relating to an assessment or reassessment, it shall be deemed
that any notice under this Act, which is required to be served upon him, has been
duly served upon him in time as per the provisions of this Act and such assessee
shall be precluded from taking any objection in any proceeding or inquiry under
this Act that the notice was—
( a )   not served upon him; or
( b )   not served upon him in time; or
( c )   served upon him in an improper manner.
(2) The provisions of sub-section (1) shall not apply where the assessee has raised
such objection before the completion of such assessment or reassessment.
32.   Substituted by the Finance Act, 2026, w.e.f.   1-4-2026 . Prior to its substitution, section 522
read as under:
“522.   Return of income, etc., not to be invalid on certain grounds.— No return of income,
assessment, notice, summons or other proceeding, furnished or made or issued or taken,
or purported to have been furnished or made or issued or taken, in pursuance of any of the
provisions of this Act, shall be invalid or shall be deemed to be invalid merely by reason of any
mistake, defect or omission in such return of income, assessment, notice, summons or other
proceeding, if such return of income, assessment, notice, summons or other proceeding is in
substance and effect in conformity with or according to the intent and purposes of this Act.”

──────────

SOURCE PDF PAGE 579
Presumption as to assets, books of account, etc.
524 .   (1) Where any books of account, other documents, money, bullion, jewellery,
virtual digital asset or other valuable article or thing or any information in
electronic form as defined in section 261( g ) or on a computer system as defined in
section 261( e ) or any computer system containing the said information, is found in
the possession or control of any person in the course of a search under section 247
or survey under section 253, it may, in any proceeding under this Act, be presumed—
( a )   that such books of account, other documents, money, bullion, jewellery,
virtual digital asset or other valuable article or thing such information
or computer system belong or belongs to such person;
( b )   that the contents of such books of account and other documents or such
information or computer system are true;
( c )   that the signature and every other part of such books of account and
other documents, which purports to be in the handwriting of any
particular person, or which may reasonably be assumed to have been
signed by, or to be in the handwriting of, any particular person, are in
the handwriting of that person;
( d )   in the case of a document stamped, executed or attested, that it was duly
stamped and executed or attested by the person by whom it purports to
have been so executed or attested; and
( e )   that exchange of such information in electronic form, or on such comput -
er system purported to be exchanged between any parties, is exchanged
between the parties thereto.
(2) Where any books of account, other documents or assets have been delivered to
the requisitioning officer as per section 248, then, the provisions of sub-section (1)
shall apply as if such books of account, other documents or assets, which had been
taken into custody from the person referred to in sub-section (1)( a ) or ( b ) or ( c ) of
the said section, had been found in the possession or control of that person in the
course of a search under section 247.
Authorisation and assessment in case of search or requisition.
525 .   (1) Irrespective of anything contained in this Act,—
( a )   it shall not be necessary to issue an authorisation under section 247 or
make a requisition under section 248 separately in the name of each
person;
( b )   where an authorisation under section 247   has been issued or requisition
under section 248 has been made mentioning therein the name of more
than one person, the mention of such names of more than one person
on such authorisation or requisition shall not be deemed to construe
that it was issued in the name of an association of persons or body of
individuals consisting of such persons.
(2) Irrespective of an authorisation issued under section 247 or a requisition made
under section 248   mentioning therein the name of more than one person, the
assessment or reassessment shall be made separately in the name of each of the
persons mentioned in such authorisation or requisition.

──────────

SOURCE PDF PAGE 580
Bar of suits in civil courts.
526.   No suit shall be brought in any civil court to set aside or modify any proceeding
taken or order made under this Act, and no prosecution, suit or other proceed -
ing shall lie against the Government or any officer of the Government for anything
in good faith done or intended to be done under this Act.
Power to make exemption, etc., in relation to participation in business of
prospecting for, extraction, etc., of mineral oils.
527.   (1) If the Central Government is satisfied that it is necessary or expedient in
the public interest, it may, by notification, make an exemption, reduction
in rate, or other modification of income-tax for any class of persons specified in
sub-section (2) or in regard to the whole or any part of the income of such class of
persons or the status in which such class of persons or the members thereof are
to be assessed on their income from the business referred to in sub-section (2)( a ),
effective from tax year beginning on or after 1st April, 1992.
(2) The persons referred to in sub-section (1) shall be the following:—
( a )   persons with whom the Central Government has entered into agreements
for the association or participation of that Government, or any person
authorised by that Government in any business of prospecting for or
extraction or production of mineral oils;
( b )   persons providing any services or facilities or supplying any ship, aircraft,
machinery or plant (whether by sale or hire) for any business consisting
of the prospecting for or extraction or production of mineral oils carried
on by that Government, or any person specified by that Government by
notification; and
( c )   employees of the persons referred to in clause ( a ) or ( b ).
(3) Every notification issued under this section shall be laid before each House of
Parliament.
(4) For the purposes this section,—
( a )   “mineral oil” includes petroleum and natural gas;
( b )   “status” means the category of person as defined in section 2( 77 ) under
which the assessee is assessed.
Power of Central Government or Board to condone delays in obtaining
approval.
528.   Where, the approval of the Central Government or the Board is required to
be obtained before a specified date under this Act, it shall be open to the Central
Government or the Board to condone, for sufficient cause, any delay in obtaining
such approval.
Power to withdraw approval.
529.   Where the Central Government or the Board or an income-tax authority, has
the power to grant any approval under any provision of this Act to any assessee,
the Central Government or the Board or such income-tax authority may, withdraw
such approval at any time after recording the reasons therefor, even if such provision
does not specifically allow for its withdrawal, after giving such assessee a reasonable
opportunity of being heard.