Chapter IV OFFENCES AND PENALTIES

(1) Any person, who,- (a) fails to pay, within the time allowed any tax assessed or any penalty imposed on him under this Act, or (b) willfully acts in contravention of the provisions of this Act or the rules made thereunder, shall, on conviction, be liable to be punished with fine which may extend to two thousand rupees. (2) Any person, who,- (a) willfully submits an untrue return or fails to submit a return as required by the provisions of this Act or the rules made thereunder., or (b) fraudulently evades the payment of any tax and other amount due from him under this Act. shall, on conviction be liable to be punished if it is a first offence with fine which may extend to two thousand rupees and if it is a second or subsequent offence with simple imprisonment which may extent to six months or with fine which may extend to five thousand rupees or with both. (3) Any person who makes any statement or declaration in any of the records or documents, which statement or declaration he knows or has reason to believe to be false shall, on conviction, be liable to be punished with simple imprisonment, which may extend to six months or with fine which may extend to two thousand rupees or with both. (4) Any person, who has indulged in any fraudulent evasion or attempted at evasion or abetment of evasion of any tax payable under this Act shall, on conviction be punished with imprisonment which may extend to six months or with fine which may extend to two thousand rupees or with both.

(1) Where an offence under this Act has been committed by a company, every person who at the time the offence was committed was in-charge of, and was responsible for, the conduct of the business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where any offence has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect, on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation.- For the purposes of this Section – (a) ‘Company’ means any body corporate and includes a firm or other association of individuals; and (b) ‘director’ in relation to a firm means a partner in the firm.

(1) No Court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate First Class shall try any offence punishable under this Act. (2) No Court shall take cognizance of any offence punishable under Section 11 except upon a complaint in writing by such authority as may be notified by the Government from time to time.

The prescribed authority may accept from any person who has committed or is reasonably suspected of having committed an offence punishable under section 11 by way of composition of such offence a sum of money not exceeding ten thousand rupees or double the amount of tax payable, whichever is greater.