Loading...

⚠ ✕
❮ Top
☎ Help
☰
×

By creating an account you can:

Logo TaxTMI
Call Us / Help / Feedback✕

Contact Us At :

✉ E-mail: [email protected]

✆ Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters 0/2000
Make Most of Text Search ✕
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
  6. Text Search
  7. The system will try to fetch results that contains ALL your words.
  8. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
  9. Text Search
╳
Add to...
You have not created any category. Kindly create one to bookmark this item!
✕
Create New Category
Hide
Title :
Description :
❮❮ Hide
❮ Default View
Expand ❯❯
Close ✕
🔎 Filters / Advanced Search ❯
TEXT

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In
Main Text + AI Text ❯
  • Main Text
  • Main Text + AI Text
  • AI Text
Law:
---- All Laws---- ❯
  • ---- All Laws----
  • Benami Property
  • Bill
  • Central Excise
  • Companies Law
  • Customs
  • DGFT
  • FEMA
  • GST
  • GST - States
  • IBC
  • Income Tax
  • Indian Laws
  • Money Laundering
  • SEBI
  • SEZ
  • Service Tax
  • VAT / Sales Tax
Types:
---- All Types ---- ❯
  • ---- All Types ----
  • Act Rules
  • Case Laws
  • Circulars
  • Manuals
  • News
  • Notifications
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
Relevance Default Date
    Case Laws Income Tax
    Navigating the Nuances of Income Tax Reassessment Post-Finance Act 2021: Resetting the Clock in Tax ...
    Case Laws Income Tax
    The Source Rule in International Taxation: Tax Implications for Non-Resident Service Providers
    Case Laws Income Tax
    Taxation of 'Success Fees' in International Transactions: The Nexus Doctrine: Situs of residence and...
    Case Laws Income Tax
    TDS and International Transactions: Categorization of Payments under the ambit of "royalty" or "fees...
    Case Laws Income Tax
    Assessment u/s 153C and Unexplained Investments: A Case Study in Legal Reasoning
    Case Laws Income Tax
    Delhi High Court Elucidates on the Scope of Section 80IA in the Context of Business Expansion: Inter...
    Case Laws Income Tax
    Penalty Limitations and Reasonable Cause: Navigating the Nuances of Tax Penalties
    Case Laws Income Tax
    Income Tax Return Delays: High Court Rules on Tax Authority's Decision-Making Boundaries
    Case Laws Income Tax
    The Interplay of Sales and Bogus Purchases in Tax Evasion Cases: Assessing Tax Evasion Allegations
    Case Laws Income Tax
    Proportionality and Evidence in Tax Assessments: Accommodation entries, Bogus Purchase and Estimatio...
    Case Laws Income Tax
    Judicial Scrutiny of Tax Deducted at Source (TDS) Non-Deposit: Protecting the Rights of Taxpayers Ag...
    Case Laws Income Tax
    Dynamics of Tax Exemption Registrations: A Comprehensive Analysis of ITAT Ahmedabad’s Decision on ...
    Case Laws Income Tax
    Transfer Pricing Litigation: The Evolving Landscape of Arm's Length Price Determination in India
    Case Laws Income Tax
    Revisiting the Scope of Revisionary Powers U/s 263: Assessing the Adequacy of Assessment Procedures ...
    Case Laws Income Tax
    Maintaining the Sanctity of Search and Seizure Procedures: Emphasizing the rigorous compliance with ...
    Case Laws Income Tax
    Analyzing the Tax Implications of Cross-Border Payments: Recognizing the payments as either 'Royalty...
    Case Laws Income Tax
    Non-Delegability of Discretionary Powers in Income Tax Assessments: Administrative Discretion in Spe...
    Case Laws Income Tax
    Taxation of Domain Registration Services in Godaddy.Com LLC Case: Tax Implications for Digital Serv...
    Case Laws Income Tax
    Navigating the Complexities of Section 80P Deductions for Cooperative Societies
    Case Laws Income Tax
    Navigating Pecuniary Jurisdiction in Tax Assessments: Assessment Orders and Legal Jurisdiction
❮
❯
❯❯
Maximize Maximize Maximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

+

Are you sure you want to delete "My most important" ?

NOTE:

Notes
Showing Results for :
Reset Filters
Results Found:
Show All Summaries Hide All Summaries
Case Laws Income Tax
Show AI Summary
Limitation period in tax reassessment: amended time limits prevent retrospective validation of reassessment notices under the new regime.
The document focuses on the amended reassessment regime introduced by the Finance Act 2021, highlighting the shortened limitation periods and the mandatory pre-notice procedure requiring inquiry and opportunity to be heard. It rejects administrative attempts to render earlier notices compliant with amended law via retrospective treatment, finds the 'travel back in time' theory legally impermissible, and stresses that limitation periods, pandemic-related extensions, and procedural safeguards determine the validity of reopening assessments.
Case Laws Income Tax
Show AI Summary
Source rule protects payments for services used to earn income abroad from domestic taxation when characterised accordingly.
Whether aircraft maintenance and repair by a non-resident constitutes technical services is addressed by reference to the specialised expertise, regulatory and safety obligations distinguishing such services from ordinary repairs; contemporaneously, retrospective statutory amendments clarifying taxation of fees for technical services are balanced against the source rule exception, under which payments for services used to earn income abroad are not taxed domestically.
Case Laws Income Tax
Show AI Summary
Nexus doctrine: source based taxation requires a real territorial connection to tax cross border consultancy success fees.
A "success fee" paid to a non resident for consultancy services characterized by human expertise constitutes a fee for technical services when there is a real and substantial connection between the income and India. The right to tax is allocated by the source rule: income is taxable in the jurisdiction where the economic source of payment is located. Parliamentary taxing power over extra territorial income is limited by the Doctrine of Territorial Nexus; only payments with a sufficient nexus to India are subject to tax at source obligations.
Case Laws Income Tax
Show AI Summary
Royalty vs fees for included services: classification of cross border lead generation payments determines TDS obligation under tax treaty.
Categorisation of cross border payments as royalty or fees for included services under the India US DTAA determines withholding under Section 195. Royalties cover payments for use of intellectual property; fees for included services require that technical knowledge, skill, or know how be made available. Services limited to lead generation, databases, or market facilitation without transfer of proprietary technical content do not qualify as either category and therefore fall outside the DTAA based TDS obligation.
Case Laws Income Tax
Show AI Summary
Search-based assessment jurisdiction governs treatment of unexplained investments when records are absent, shifting the burden of proof to the assessee.
Assessment based on search-derived incriminating material applies when jurisdiction under search-based assessment is not contested, and unexplained investments are taxed depending on whether amounts are recorded in books of account. The assessee bears the onus to explain investments; absence of records, non-filing of returns and non-cooperation justify adverse inferences. Procedural elements such as delay condonation, set-aside orders and cooperation in reassessment affect the assessment process, while interest for non-furnishing of returns is tied to the timing of the regular assessment.
Case Laws Income Tax
Show AI Summary
Scope of Section 80IA: expansion within the same undertaking does not automatically forfeit tax holiday eligibility.
The court considered whether adding services and acquiring additional licenses by a telecommunications company created a new "undertaking" for tax holiday purposes. Finding that the company continued its original business using largely the same infrastructure and manpower, the court endorsed the Tribunal's conclusion that expansion within the same operational framework does not automatically constitute a separate undertaking and should not defeat eligibility for the tax holiday intended to encourage capital intensive projects.
Case Laws Income Tax
Show AI Summary
Limitation for tax penalties: emphasis on initiation of action preserves enforcement; reasonable cause evaluated by business realities.
Applicability of the limitation period is determined by the initiation of action rather than the formal start of penalty proceedings, making the triggering of enforcement activity the operative moment for limitation. The reasonable cause doctrine is applied with attention to the appellant's bank like operations despite its cooperative structure, recognizing long standing practices and business realities as bearing on culpability for transaction handling contraventions.
Case Laws Income Tax
Show AI Summary
Condonation of delay: focus on admissibility of the request, not the substantive merits of the tax claim.
The legal principle requires that the authorized officer considering a condonation application under Section 119(2)(b) confine inquiry to the admissibility of the request and the justification for delay; assessment of the substantive merits of the taxpayer's income or loss claim is not part of the condonation exercise, and evidentiary review is limited to matters relevant to excusing the delay.
Case Laws Income Tax
Show AI Summary
Interplay of sales and bogus purchases: sales consistency limits rejection of purchases and favors gross profit alignment for taxation.
For traders, rejection of purchases cannot proceed in isolation where declared sales exhibit regularity; cost of goods sold must be coherent with recorded sales. Tax adjustments should compare differential gross profit margins and align challenged purchases with genuine GP rates, allowing proportional taxation reconciliations rather than adding the entire value of disputed purchases as income.
Case Laws Income Tax
Show AI Summary
Proportionality in tax assessments preserved: additions limited to profit element where sales are accepted, not entire purchase.
Alleged accommodation entries may be restricted to taxation of the profit element where sales from those purchases are accepted; the tribunal limited an addition accordingly and the court upheld that proportionality. Separately, an enhanced gross profit addition was deleted because there was no concrete evidence to displace the assessee's declared book results; the court agreed that revenue must meet the evidentiary burden before altering declared figures.
Case Laws Income Tax
Show AI Summary
Tax Deducted at Source protection: taxpayers not liable for employer's failure to deposit TDS; refunds should not be adjusted.
The note explains that TDS credit protection bars holding an assessee liable for tax already deducted by an employer who failed to remit it; employers bear the deposit obligation as tax-collecting agents. Adjusting taxpayer refunds or using coercive measures to recover demands arising from employer non-deposit contravenes the protective principle and indirect recovery limits, and authorities should correct credit mismatches rather than treat deductees as liable.
Case Laws Income Tax
Show AI Summary
Tax exemption registration: tribunal ordered reconsideration where delay arose from bona fide reliance on provisional registration and circulars.
The Tribunal held that rejection of the final registration application under Section 80G for being time barred was improper where the Commissioner did not consider administrative circulars extending filing timelines and the trust's bona fide reliance on provisional registration; the ITAT set aside the order and directed reconsideration with an opportunity to be heard.
Case Laws Income Tax
Show AI Summary
Arm's Length Principle enforcement: comparables, functional profiling, and admissibility of additional evidence determine transfer pricing outcomes.
Dispute concerns determination of Arm's Length Price (ALP) for international transactions, focusing on comparable selection, adjustments for functional differences, and functional profiling's effect on ALP reliability. The Tribunal also deals with the admissibility of additional evidence on appeal and scrutiny of changes in benchmarking approaches across assessment years, stressing contemporaneous, consistent documentation and justification for methodological changes while balancing procedural finality and factual completeness.
Case Laws Income Tax
Show AI Summary
Revisionary powers under Section 263 limited where assessment thoroughly examined transactions and no specific error is shown.
Scope of revisionary powers under Section 263 is limited where the original assessment shows a detailed examination and allowance of losses; direction for re-examination without specific findings of error prejudicial to revenue is insufficient. Transactions integral to business and carried out as hedging do not fall within the definition of speculative transactions under Section 43(5).
Case Laws Income Tax
Show AI Summary
Search and seizure procedural compliance: satisfaction note requirement under section 153C governs validity of assessments.
Assessments against persons other than the searched individual require a recorded satisfaction by the assessing officer that seized assets or documents belong to that other person; absence of a satisfaction note in the searched person's file invalidates consequential assessments under the search-derived assessment provisions. Determination of the applicable assessment years hinges on whether the assessment period is tied to the date of search, the date satisfaction is recorded, or the date seized material is received, requiring harmonious construction to align enforcement with taxpayer protections.
Case Laws Income Tax
Show AI Summary
Characterisation of cross-border payments as royalty or service fees determines withholding obligations under tax treaty and domestic law.
Characterisation of cross-border payments under the Income Tax Act and the India-USA DTAA focused on whether payments to a US non-resident constituted royalty or fees for included services under section 9(1)(vii) and Article 12, whether TDS obligations arose, and whether sections 201(1) and 201(1A) could be invoked; the Karnataka High Court and ITAT concluded the payments were not royalty/fees for included services, services were rendered outside India, the payee lacked an Indian permanent establishment, and therefore withholding obligations did not arise.
Case Laws Income Tax
Show AI Summary
Non-delegability of discretionary powers: extension of tax audit report time must be granted by assessing officer, not delegate.
The power to order a special audit and to extend the timeframe for submission of the audit report is vested in the Assessing Officer and must be exercised by that officer alone; administrative convenience cannot justify delegation to the Commissioner. An extension granted by the Commissioner, even if prompted by the AO's recommendation, is inconsistent with the statutory scheme and can render subsequent assessment orders vulnerable to being barred by limitation.
Case Laws Income Tax
Show AI Summary
Royalty characterization of domain registration fees requires a transfer of proprietary or use rights; mere registrar facilitation does not qualify.
Whether fees for domain name registration qualify as royalty depends on whether the registrar transfers a proprietary or right-to-use interest; a registrar acting as intermediary under its accreditation agreement that disclaims ownership and does not convey exclusive or transferable rights does not convert registration fees into royalty.
Case Laws Income Tax
Show AI Summary
Section 80P deductions for cooperative societies hinge on membership composition, agricultural lending predominance and banking activity compliance.
The analysis examines eligibility for section 80P deductions for primary agricultural credit cooperative societies, focusing on whether their income composition, predominance of agricultural versus non agricultural advances, membership classes, bye laws, and acceptance of public deposits (with its banking implications) fall within the statutory deduction framework; prior precedents are applied to identify conditions and compliance measures societies must address.
Case Laws Income Tax
Show AI Summary
Jurisdictional competence in tax assessment is essential; assessments by non authorized officers risk invalidation under procedural rules.
The dispute focuses on the jurisdiction of the Assessing Officer under CBDT Instruction No. 1/2011 and whether an assessment framed by an officer lacking pecuniary competence is valid; it emphasizes that compliance with jurisdictional limits and the procedural step under Section 143(2), together with principles of procedural fairness, determine the assessment's legality.

TMI Notes

Back

All TMI Notes

Showing Results for :
Reset Filters
No Records Found

TMI Notes

Back

All TMI Notes

Comparison of section 479 "Failure to furnish returns of income." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

16 September, 2025

Contents
Acts
Rules & Regulations
Summary
Note

Note

-

Bookmark

Print

Print

Section 479 Failure to furnish returns of income

Income-tax Act, 2025

At a Glance

This document is Clause 479 of the Income Tax Bill, 2025 (Old Version) entitled "Failure to furnish returns of income." It prescribes penal consequences where a person wilfully fails to furnish, in due time, a return of income required under specified sections. The provision affects taxpayers (individuals and companies), enforcement authorities and the prosecutorial framework. Effective date or enactment date: Not stated in the document.

Background & Scope

Statutory hook: Clause 479 sits under the chapter heading "OFFENCES AND PROSECUTION" within the Income Tax Bill, 2025. It addresses criminal liability for willful failure to furnish a return required u/s 263(1) or by notice u/ss 268(1) or 280. The clause distinguishes high-value evasion cases (where the amount of tax that would have been evaded exceeds twenty-five lakh rupees) from other cases, and sets minimum and maximum terms of imprisonment and fine. The text provides no in-line definitions; any defined terms (for example, "wilfully", "return of income", "total income", or precise meanings of sections 263, 268, 280) must be located elsewhere in the Bill or Act. Not stated in the document: detailed definitions or legislative intent beyond the penal scheme.

Statutory Provision Mode

Text & Scope

Clause 479(1) criminalises a person's wilful failure to furnish, in due time, the return of income required u/s 263(1) or by notice u/ss 268(1) or 280. Two tiers of punishment are specified:

  • Sub-clause (a): where the amount of tax that would have been evaded (if the failure had not been discovered) exceeds twenty-five lakh rupees - rigorous imprisonment not less than six months and up to seven years; and liability to fine.
  • Sub-clause (b): in any other case - imprisonment not less than three months and up to two years; and liability to fine.

Clause 479(2) creates a bar to prosecution for failure to furnish the return u/s 263(1) for any tax year, if either:

  • (a) the return is furnished before the expiry of one year from the end of the tax year or a return is furnished u/s 263(6) within the time provided in that section; or
  • (b) for a person other than a company, the tax payable on total income determined on regular assessment, reduced by advance tax or self-assessment tax paid before the expiry of one year from the end of the tax year and any tax deducted or collected at source, does not exceed ten thousand rupees.

Interpretation

The clause uses the conventional penal structure: mens rea ("wilfully") plus an act (failure to furnish). The text indicates legislative policy to differentiate between significant evasion (greater than Rs. 25 lakh) and lesser cases by calibrating maximum and minimum imprisonment. The immunity provisions in sub-section (2) embody a limited safe harbour, permitting prosecution to be avoided where the return is subsequently furnished within the specified time or where the tax shortfall is de minimis for non-companies. The clause ties the exemption under (2)(a) specifically to temporal compliance (one year from the end of the tax year) or to compliance u/s 263(6); (2)(b) uses the same temporal reference for counting late tax payments for the de-minimis test.

Exceptions/Provisos

The provision itself contains its exceptions at sub-section (2): temporal cure of the default and a monetary de-minimis threshold applicable to non-company taxpayers. There are no other provisos or carve-outs in the text. Not stated in the document: whether the de-minimis threshold applies to companies (the clause expressly excludes companies) or any alternative thresholds for companies; the policy reasoning for the Rs. 10,000 limit; procedural consequences where immunity conditions are met (for example, whether civil penalties remain payable) are not stated.

Illustrations

  • Example 1: A non-company taxpayer fails to file the return for AY 2025-26 but files the return within one year from the end of the tax year; therefore, under clause 479(2)(a) prosecution would be barred. (Consistent with the text.)
  • Example 2: A person wilfully fails to furnish a return and the tax that would have been evaded is assessed at Rs. 30 lakh; the person is punishable under clause 479(1)(a) with rigorous imprisonment between six months and seven years and liable to fine. (Consistent with the text.)
  • Example 3: A corporate taxpayer whose shortfall is under Rs. 10,000 but who did not pay the advance tax before the expiry of one year may not benefit from clause 479(2)(b) because the exclusion expressly applies only to persons "not being a company." (Consistent with the text.)

Interplay

The clause references sections 263(1), 263(6), 268(1) and 280. The provision's practical import therefore depends on the procedural timelines and definitions set out in those sections. The document does not reproduce or summarise sections 263, 268 or 280, nor any Rules, Notifications or Circulars that may interpret them. Not stated in the document: interaction with penal provisions elsewhere in the Bill/Act (for example, provisions dealing with prosecution procedure, compoundability, or assessment procedures) and whether prosecution under Clause 479 can be combined with other criminal charges for related tax offences.

Differences Between the Two Provisions and Practical Impact

  • Wording on Fine Liability: Document 1 (Section 479, Income-tax Act, 2025) states the punishments "with fine" in sub-clauses (a) and (b). Document 2 (Clause 479 of the Income Tax Bill, 2025 (Old Version)) states the offender "shall also be liable to fine."
    • Practical impact: No substantive difference in penalty exposure; the Bill's language emphasises an additional fine liability whereas the enacted version uses a shorter phrase. Both imply imprisonment plus fine; no material change in sanction quantum is specified in either text.
  • Timing/Conditions for Curing Failure (sub-section (2)(a)): Document 2 (Bill, Old Version) provides that a person shall not be proceeded against if "the return is furnished by him before the expiry of one year from the end of the tax year or a return is furnished by him u/s 263(6) within the time provided in that section." Document 1 (Act, enacted Section 479) instead provides that a person shall not be proceeded against if "a return is furnished by him u/s 263(4) or 263(6)."
    • Practical impact: The Bill's Old Version allows a specific time-limit cure (within one year from the end of the tax year) as an immunity condition; the enacted Act replaces that explicit one-year cure by reference to section 263(4) (which presumably contains the timing) and 263(6). If section 263(4) contains a different time frame than one year, this is a substantive change to the available safe harbour; if 263(4) corresponds to the one-year provision, the change is largely stylistic. The enacted text removes the redundant explicit "one year" phrasing and anchors the immunity to the procedure in section 263(4). The practical consequence depends on the content of section 263(4) (Not stated in the document).
  • Timing Reference in Sub-section (2)(b): Document 2 reduces the tax payable threshold calculation by referencing amounts "paid before the expiry of one year from the end of the tax year." Document 1 modifies that to amounts "paid before the expiry of period specified u/s 263(4)".
    • Practical impact: Similar to (2)(a), the Bill's Old Version uses an explicit one-year benchmark for counting advance/self-assessment tax payments; the enacted version ties the benchmark to section 263(4). Whether this expands or narrows the scope of immunity depends on the actual period specified in section 263(4) (Not stated in the document).

Practical Implications

  • Compliance and risk areas: The clause elevates the stakes for deliberate non-filing by providing significant custodial exposure where the tax evaded exceeds Rs. 25 lakh. Taxpayers should be aware that willful non-filing, once construed by authorities as intentional, exposes them to criminal prosecution unless the specified cure is available. For companies, the de-minimis safe harbour in sub-section (2)(b) does not apply, exposing corporate failures to prosecution even for relatively small tax shortfalls (Not stated in the document: reason for exclusion of companies).
  • Record-keeping/evidence points: Relevant documentary evidence to demonstrate timely payment of advance or self-assessment tax (dates and amounts) and evidence of filing within the one-year window will be material to establishing the bar in sub-section (2). Evidence of absence of wilfulness (for example, correspondence, bona fide difficulties) would also be relevant to rebut the mens rea requirement; however, procedural guidance on burden of proof is Not stated in the document.

Key Takeaways

  • Clause 479 criminalises wilful failure to furnish returns required under specified sections, with tiered custodial penalties linked to the amount of tax evaded.
  • High-value cases (tax evaded > Rs. 25 lakh) attract rigorous imprisonment of six months to seven years plus fine; other cases attract imprisonment of three months to two years plus fine.
  • Prosecution is barred if the return is filed within one year from the end of the tax year (or u/s 263(6) within its time) or where, for non-companies, the net tax liability after qualifying payments does not exceed Rs. 10,000.
  • The provision excludes companies from the monetary de-minimis immunity; the rationale and alternative company thresholds are Not stated in the document.
  • The provision's practical effect depends on the content and timelines of sections 263, 268 and 280, which are not reproduced here; those cross-references must be consulted to determine exact temporal and procedural mechanics.

Full Text:

Section 479 Failure to furnish returns of income

Topics

Acts Income Tax