Penalty for false entries: assessing officer may impose a penalty equal to aggregate amount of bogus or omitted entries used to evade tax.

The provision empowers the Assessing Officer to impose a penalty equal to the aggregate amount of any false entry or omission in books of account relevant to computation of total income where such entries are used to evade tax; it also permits imposing equivalent penalty on any person who causes another to make or omit such entries. "False entry" includes forged or falsified documents, invoices for non-existent supplies or receipts, and invoices to or from non-existent persons.

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