False statements in tax verifications can trigger prosecution when the person knows, believes, or does not believe their truth.

Prosecution under Section 277 arises where a person makes a false statement in any verification under the Income Tax Act or delivers an account or statement which is false, and the person knows or believes it to be false, or does not believe it to be true, thereby linking criminal liability to materially false verifications or accounts together with the requisite mental element.

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