(1)If the ][Assessing Officer] [ Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).][or the ] [Substituted by Act 4 of 1988, Section 106 (w.e.f. 1.4.1989).] [* * *] [ Omitted by Act 21 of 1998, Section 65 (w.e.f. 1.10.1998).] [Commissioner (Appeals)] [ Inserted by Act 29 of 1977, Section 39 and Schedule V (w.e.f. 10.7.1978).] [or the Commissioner] [ Inserted by Act 20 of 2002, Section 101 (w.e.f. 1.6.2002).][in the course of any proceedings under this Act, is satisfied that any person-] [Substituted by Act 4 of 1988, Section 106 (w.e.f. 1.4.1989).][* * *] [ Omitted by Act 3 of 1989, Section 50 (w.e.f. 1.4.1989).](b)[ has ] [Substituted by Act 4 of 1988, Section 106 (w.e.f. 1.4.1989).][* * *] [ Omitted by Act 46 of 1986, Section 19 (w.e.f. 10.9.1986).][failed to comply with the notice ] [Substituted by Act 4 of 1988, Section 106 (w.e.f. 1.4.1989).] [under sub-section (2) of section 115-WD or under sub-section (2) of section 115-WE or under sub-section (1) of section 142] [ Substituted by Act 18 of 2005, Section 58, for certain words (w.e.f. 1.4.2006).][or sub-section (2) of section 143 ] [Substituted by Act 4 of 1988, Section 106 (w.e.f. 1.4.1989).][or fails to comply with a direction issued under sub-section (2-A) of section 142] [ Inserted by Act 41 of 1975, Section 61 (w.e.f. 1.4.1976).][, or [Substituted by Act 4 of 1988, Section 106 (w.e.f. 1.4.1989).](c)has concealed the particulars of his income or ][* * *] [ Omitted by Act 5 of 1964, Section 40 (w.r.e.f. 1.4.1964).] [furnished inaccurate particulars of ] [Substituted by Act 4 of 1988, Section 106 (w.e.f. 1.4.1989).][such income, or] [ Substituted by Act 18 of 2005, Section 58, for certain words (w.e.f. 1.4.2006).](d)[ has concealed the particulars of the fringe benefits or furnished inaccurate particulars of such fringe benefits,] [ Inserted by Act 18 of 2005, Section 58 (w.e.f. 1.4.2006).][he may direct that such person shall pay by way of penalty,-] [Substituted by Act 4 of 1988, Section 106 (w.e.f. 1.4.1989).][* * *] [ Omitted by Act 3 of 1989, Section 50 (w.e.f. 1.4.1989).](ii)[ in the cases referred to in clause (b), ] [Substituted by Act 3 of 1989, Section 50, for Clause (ii) (w.e.f. 1.4.1989).][in addition to tax, if any, payable] [ Substituted by Act 20 of 2002, Section 101, for " in addition to any tax payable" (w.e.f. 1.4.2003).][by him,] [Substituted by Act 3 of 1989, Section 50, for Clause (ii) (w.e.f. 1.4.1989).] [a sum of ten thousand rupees] [ Substituted by Act 14 of 2001, Section 86, for " a sum which shall not be less one thousand rupees but which may extend to twenty-five thousand rupees" (w.e.f. 1.6.2001).][for each such failure;] [Substituted by Act 3 of 1989, Section 50, for Clause (ii) (w.e.f. 1.4.1989).](iii)[ in the cases referred to in ] [Substituted by Act 41 of 1975, Section 61, for Clause (iii) (w.e.f. 1.4.1976).][clause (c) or clause (d)] [ Substituted by Act 18 of 2005, Section 58, for certain words (w.e.f. 1.4.2006).], [in addition to tax, if any, payable] [ Substituted by Act 20 of 2002, Section 101, for " in addition to any tax payable" (w.e.f. 1.4.2003).][by him, a sum which shall not be less than, but which shall not exceed ] [Substituted by Act 41 of 1975, Section 61, for Clause (iii) (w.e.f. 1.4.1976).] [three times] [ Substituted by Act 3 of 1989, Section 50, for " twice" (w.e.f. 1.4.1989).][, the amount of tax sought to be evaded by reason of the concealment of particulars of his ] [Substituted by Act 41 of 1975, Section 61, for Clause (iii) (w.e.f. 1.4.1976).][income or fringe benefits] [ Substituted by Act 18 of 2005, Section 58, for certain words (w.e.f. 1.4.2006).][or the furnishing of inaccurate particulars of such ] [Substituted by Act 41 of 1975, Section 61, for Clause (iii) (w.e.f. 1.4.1976).][income or fringe benefits] [ Substituted by Act 18 of 2005, Section 58, for certain words (w.e.f. 1.4.2006).].][* * *] [ Omitted by Act 3 of 1989, Section 50 (w.e.f. 1.4.1989).][Explanation 1. - Where in respect of any facts material to the computation of the total income of any person under this Act,-] [ Substituted by Act 41 of 1975, Section 61, for Explanation (w.e.f. 1.4.1976).](A)[ such person fails to offer an explanation or offers an explanation which is found by the ] [Substituted by Act 4 of 1988, Section 106 (w.e.f. 1.4.1989).][Assessing Officer] [ Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).][or the] [Substituted by Act 4 of 1988, Section 106 (w.e.f. 1.4.1989).] [* * *] [ Omitted by Act 21 of 1998, Section 65 (w.e.f. 1.10.1998).][Commissioner (Appeals)] [ Inserted by Act 29 of 1977, Section 39 and Schedule V (w.e.f. 10.7.1978).][or the Commissioner] [ Inserted by Act 20 of 2002, Section 101 (w.e.f. 1.6.2002).][to be false, or [Substituted by Act 4 of 1988, Section 106 (w.e.f. 1.4.1989).](B)such person offers an explanation which he is ][not able to substantiate and fails to prove that such explanation is bona fide and that all the facts relating to the same and material to the computation of his total income have been disclosed by him, then, the amount added or disallowed in computing the total income of such person as a result thereof shall, for the purposes of clause (c) of this sub-section, be deemed to represent the income in respect of which particulars have been concealed.] [ Substituted by Act 46 of 1986, Section 19, for " not able to substitute" (w.e.f. 10.9.1986).][* * *] [ Omitted by Act 46 of 1986, Section 19 (w.e.f. 10.9.1986).][Explanation 2. - Where the source of any receipt, deposit, outgoing or investment in any assessment year is claimed by any person to be an amount which had been added in computing the income or deducted in computing the loss in the assessment of such person for any earlier assessment year or years but in respect of which no penalty under clause (iii) of this sub-section had been levied, that part of the amount so added or deducted in such earlier assessment year immediately preceding the year in which the receipt, deposit, outgoing or investment appears (such earlier assessment year hereafter in this Explanation referred to as the first preceding year) which is sufficient to cover the amount represented by such receipt, deposit or outgoing or value of such investment (such amount or value hereafter in this Explanation referred to as the utilised amount) shall be treated as the income of the assessee, particulars of which had been concealed or inaccurate particulars of which had been furnished for the first preceding year; and where the amount so added or deducted in the first preceding year is not sufficient to cover the utilised amount, that part of the amount so added or deducted in the year immediately preceding the first preceding year which is sufficient to cover such part of the utilised amount as is not so covered shall be treated to be the income of the assessee, particulars of which had been concealed or inaccurate particulars of which had been furnished for the year immediately preceding the first preceding year and so on, until the entire utilised amount is covered by the amount so added or deducted in such earlier assessment years.] [Substituted by Act 4 of 1988, Section 106 (w.e.f. 1.4.1989).][Explanation 3. -Where any person ] [Substituted by Act 3 of 1989, Section 50, for Explanation 3 (w.e.f. 1.4.1989).][* * *] [ Certain words omitted by Act 20 of 2002, Section 101 (w.e.f. 1.4.2003).] [fails, without reasonable cause, to furnish within the period specified in sub-section (1) of section 153 a return of his income which he is required to furnish under section 139 in respect of any assessment year commencing on or after the 1st day of April, 1989, and until the expiry of the period aforesaid, no notice has been issued to him under clause (i) of sub-section (1) of section 142 or section 148 and the Assessing Officer or the ] [Substituted by Act 3 of 1989, Section 50, for Explanation 3 (w.e.f. 1.4.1989).][* * *] [ Omitted by Act 21 of 1998, Section 65 (w.e.f. 1.10.1998).][Commissioner (Appeals) is satisfied that in respect of such assessment year such person has taxable income, then, such person shall, for the purposes of clause (c) of this sub-section, be deemed to have concealed the particulars of his income in respect of such assessment year, notwithstanding that such person furnishes a return of his income at any time after the expiry of the period aforesaid in pursuance of a notice under section 148.] [Substituted by Act 3 of 1989, Section 50, for Explanation 3 (w.e.f. 1.4.1989).][Explanation 4. [Inserted by Finance Act, 2015 (No. 20 of 2015), dated 14.5.2015.] - For the purposes of clause (iii) of this sub-section, -(a)the amount of tax sought to be evaded shall be determined in accordance with the following formula -(A - B) + (C - D)where,A = amount of tax on the total income assessed as per the provisions other than the provisions contained in section 115JB or section 115JC (herein called general provisions);B = amount of tax that would have been chargeable had the total income assessed as per the general provisions been reduced by the amount of income in respect of which particulars have been concealed or inaccurate particulars have been furnished;C = amount of tax on the total income assessed as per the provisions contained in section 115JB or section 115JC;D = amount of tax that would have been chargeable had the total income assessed as per the provisions contained in section 115JB or section 115JC been reduced by the amount of income in respect of which particulars have been concealed or inaccurate particulars have been furnished:Provided that where the amount of income in respect of which particulars have been concealed or inaccurate particulars have been furnished on any issue is considered both under the provisions contained in section 115JB or section 115JC and under general provisions, such amount shall not be reduced from total income assessed while determining the amount under item D:Provided further that in a case where the provisions contained in section 115JB or section 115JC are not applicable, the item (C -D) in the formula shall be ignored;(b)where in any case the amount of income in respect of which particulars have been concealed or inaccurate particulars have been furnished has the effect of reducing the loss declared in the return or converting that loss into income, the amount of tax sought to be evaded shall be determined in accordance with the formula specified in clause (a) with the modification that the amount to be determined for item (A -B) in that formula shall be the amount of tax that would have been chargeable on the income in respect of which particulars have been concealed or inaccurate particulars have been furnished had such income been the total income;(c)where in any case to which Explanation 3 applies, the amount of tax sought to be evaded shall be the tax on the total income assessed as reduced by the amount of advance tax, tax deducted at source, tax collected at source and self-assessment tax paid before the issue of notice under section 148.][Explanation 5. - Where in the course of a ] [Inserted by Act 67 of 1984, Section 48 (w.e.f. 1.4.1984).][search initiated under section 132 before the 1st day of June, 2007] [ Substituted by Act 22 of 2007, Section 76, for " search under section 132" (w.e.f. 1.6.2007).][, the assessee is found to be the owner of any money, bullion, jewellery or other valuable article or thing (hereafter in this Explanation referred to as assets) and the assessee claims that such assets have been acquired by him by utilising (wholly or in part) his income,-] [Inserted by Act 67 of 1984, Section 48 (w.e.f. 1.4.1984).](a)[ for any previous year which has ended before the date of the search, but the return of income for such year has not been furnished before the said date or, where such return has been furnished before the said date, such income has not been declared therein; or [Substituted by Act 4 of 1988, Section 106 (w.e.f. 1.4.1989).](b)for any previous year which is to end on or after the date of the search, then, notwithstanding that such income is declared by him in any return of income furnished on or after the date of the search, he shall, for the purposes of imposition of a penalty under clause (c) of sub-section (1) of this section, be deemed to have concealed the particulars of his income or furnished inaccurate particulars of such income, ][unless,- [ Substituted by Act 46 of 1986, Section 19, for certain words (w.e.f. 10.9.1986).]
