Section 273 of Income Tax Act "False estimate of, or failure to pay, advance tax"
273. (1) If the Assessing Officer, in the course of any
proceedings in connection with the regular assessment for
any assessment year, is satisfied that any assessee-
(a) has furnished under clause (a) of sub-section (1) of
section 209A a statement of the advance tax payable by him
which he knew or had reason to believe to be untrue, or
(b) has failed to furnish a statement of the advance tax
payable by him in accordance with the provisions of clause
(a) of sub-section (1) of section 209A,
he may direct that such person shall, in addition to the
amount of tax, if any, payable by him, pay by way of penalty
a sum-
(i) which, in the case referred to in clause (a), shall not
be less than ten per cent but shall not exceed one and a
half times the amount by which the tax actually paid during
the financial year immediately preceding the assessment year
under the provisions of Chapter XVII-C falls short of-
(1) seventy-five per cent of the assessed tax as defined in
sub-section (5) of section 215, or
(2) the amount which would have been payable by way of
advance tax if the assessee had furnished a correct and
complete statement in accordance with the provisions of
clause (a) of sub-section (1) of section 209A,
whichever is less;
(ii) which, in the case referred to in clause (b), shall not
be less than ten per cent but shall not exceed one and a
half times of seventy-five per cent of the assessed tax as
defined in sub-section (5) of section 215:
Provided that in the case of an assessee, being a company,
the provisions of this sub-section shall have effect as if
for the words "seventy-five per cent", at both the places
where they occur, the words "eighty-three and one-third per
cent" had been substituted.
(2) If the Assessing Officer, in the course of any
proceedings in connection with the regular assessment for
the assessment year commencing on the 1st day of April,
1970, or any subsequent assessment year, is satisfied that
any assessee-
(a) has furnished under sub-section (1) or sub-section (2)
or sub-section (3) or sub-section (5) of section 209A, or
under sub-section (1) or sub-section (2) of section 212, an
estimate of the advance tax payable by him which he knew or
had reason to believe to be untrue, or
(aa) has furnished under sub-section (4) of section 209A or
under sub-section (3A) of section 212 an estimate of the
advance tax payable by him which he knew or had reason to
believe to be untrue, or
(b) has failed to furnish an estimate of the advance tax
payable by him in accordance with the provisions of clause
(b) of sub-section (1) of section 209A, or
(c) has failed to furnish an estimate of the advance tax
payable by him in accordance with the provisions of
sub-section (4) of section 209A or sub-section (3A) of
section 212,
he may direct that such person shall, in addition to the
amount of tax, if any, payable by him, pay by way of penalty
a sum-
(i) which, in the case referred to in clause (a), shall not
be less than ten per cent but shall not exceed one and a
half times the amount by which the tax actually paid during
the financial year immediately preceding the assessment year
under the provisions of Chapter XVII-C falls short of-
(1) seventy-five per cent of the assessed tax as defined in
sub-section (5) of section 215, or
(2) where a statement under clause (a) of sub-section (1) of
section 209A was furnished by the assessee or where a notice
under section 210 was issued to the assessee, the amount
payable under such statement or, as the case may be, such
notice,
whichever is less;
(ia) which, in the case referred to in clause (aa), shall
not be less than ten per cent but shall not exceed one and a
half times the amount by which the tax actually paid during
the financial year immediately preceding the assessment year
under the provisions of Chapter XVII-C falls short of
seventy-five per cent of the assessed tax as defined in
sub-section (5) of section 215;
(ii) which, in the case referred to in clause (b), shall not
be less than ten per cent but shall not exceed one and a
half times of seventy-five per cent of the assessed tax as
defined in sub-section (5) of section 215; and
(iii) which, in the case referred to in clause (c), shall
not be less than ten per cent but shall not exceed one and a
half times the amount by which-
(a) where the assessee has sent a statement under clause
(a), or an estimate under clause (b) of sub-section (1) of
section 209A, or an estimate in lieu of a statement under
sub-section (2) of that section, the tax payable in
accordance with such statement or estimate; or
(b) where the assessee was required to pay advance tax in
accordance with the notice issued to him under section 210,
the tax payable under such notice,
falls short of seventy-five per cent of the assessed tax as
defined in sub-section (5) of section 215:
Provided that in the case of an assessee, being a company,
the provisions of this sub-section shall have effect as if
for the words "seventy-five per cent", wherever they occur,
the words "eighty-three and one-third per cent" had been
substituted.
Explanation 1.-For the purposes of clause (ia), the amount
paid by the assessee on or before the date extended by the
Principal Chief Commissioner or Chief Commissioner or
Principal Commissioner or Commissioner under the first
proviso to sub-section (4) of section 209A or, as the case
may be, first proviso to sub-section (3A) of section 212
shall, where the date so extended falls beyond the financial
year immediately preceding the assessment year, also be
regarded as tax actually paid during that financial year.
Explanation 2.-When the person liable to penalty is a
registered firm or an unregistered firm which has been
assessed under clause (b) of section 183, then,
notwithstanding anything contained in the other provisions
of this Act, the penalty imposable under this section shall
be the same amount as would be imposable on that firm if
that firm were an unregistered firm.
(3) The provisions of this section shall apply to and in
relation to any assessment for the assessment year
commencing on the 1st day of April, 1988, or any earlier
assessment year, and references in this section to the other
provisions of this Act shall be construed as references to
those provisions as for the time being in force and
applicable to the relevant assessment year.
273A. (1) Notwithstanding anything contained in this Act,
the Principal Commissioner or Commissioner may, in his
discretion, whether on his own motion or otherwise,-
(i) [***]
(ii) reduce or waive the amount of penalty imposed or
imposable on a person under section 270A or clause (iii) of
sub-section (1) of section 271; or
(iii) [***]
if he is satisfied that such person-
(a) [***]
(b) in the case referred to in clause (ii), has, prior to
the detection by the Assessing Officer, of the concealment
of particulars of income or of the inaccuracy of particulars
furnished in respect of such income, voluntarily and in good
faith, made full and true disclosure of such particulars,
(c) [***]
and also has, in the case referred to in clause (b),
co-operated in any enquiry relating to the assessment of his
income and has either paid or made satisfactory arrangements
for the payment of any tax or interest payable in
consequence of an order passed under this Act in respect of
the relevant assessment year.
Explanation.-For the purposes of this sub-section, a person
shall be deemed to have made full and true disclosure of his
income or of the particulars relating thereto in any case
where the excess of income assessed over the income returned
is of such a nature as not to attract the provisions of
section 270A or clause (c) of sub-section (1) of section
271.
(2) Notwithstanding anything contained in sub-section (1),-
(a) [***]
(b) if in a case falling under section 270A or clause (c) of
sub-section (1) of section 271, the amount of income in
respect of which the penalty is imposed or imposable for the
relevant assessment year, or, where such disclosure relates
to more than one assessment year, the aggregate amount of
such income for those years, exceeds a sum of five hundred
thousand rupees,
no order reducing or waiving the penalty under sub-section
(1) shall be made by the Principal Commissioner or
Commissioner except with the previous approval of the
Principal Chief Commissioner or Chief Commissioner or
Principal Director General or Director General, as the case
may be.
(3) Where an order has been made under sub-section (1) in
favour of any person, whether such order relates to one or
more assessment years, he shall not be entitled to any
relief under this section in relation to any other
assessment year at any time after the making of such order :
Provided that where an order has been made in favour of any
person under sub-section (1) on or before the 24th day of
July, 1991, such person shall be entitled to further relief
only once in relation to other assessment year or years if
he makes an application to the income-tax authority referred
to in sub-section (4) at any time before the 1st day of
April, 1992.
(4) Without prejudice to the powers conferred on him by any
other provision of this Act, the Principal Commissioner or
Commissioner may, on an application made in this behalf by
an assessee, and after recording his reasons for so doing,
reduce or waive the amount of any penalty payable by the
assessee under this Act or stay or compound any proceeding
for the recovery of any such amount, if he is satisfied
that-
(i) to do otherwise would cause genuine hardship to the
assessee, having regard to the circumstances of the case;
and
(ii) the assessee has co-operated in any inquiry relating to
the assessment or any proceeding for the recovery of any
amount due from him:
Provided that where the amount of any penalty payable under
this Act or, where such application relates to more than one
penalty, the aggregate amount of such penalties exceeds one
hundred thousand rupees, no order reducing or waiving the
amount or compounding any proceeding for its recovery under
this sub-section shall be made by the Principal Commissioner
or Commissioner except with the previous approval of the
Principal Chief Commissioner or Chief Commissioner or
Principal Director General or Director General, as the case
may be.
(4A) The order under sub-section (4), either accepting or
rejecting the application in full or in part, shall be
passed within a period of twelve months from the end of the
month in which the application under the said sub-section is
received by the Principal Commissioner or the Commissioner:
Provided that no order rejecting the application, either in
full or in part, shall be passed unless the assessee has
been given an opportunity of being heard:
Provided further that where any application is pending as on
the 1st day of June, 2016, the order shall be passed on or
before the 31st day of May, 2017.
(5) Every order made under this section shall be final and
shall not be called into question by any court or any other
authority.
(6) The provisions of this section as they stood immediately
before their amendment by the Direct Tax Laws (Amendment)
Act, 1989 shall apply to and in relation to any assessment
for the assessment year commencing on the 1st day of April,
1988, or any earlier assessment year, and references in this
section to the other provisions of this Act shall be
construed as references to those provisions as for the time
being in force and applicable to the relevant assessment
year.
(7) Notwithstanding anything contained in sub-section (6),
the provisions of sub-section (1), sub-section (2), or, as
the case may be, sub-section (4) as they stood immediately
before their amendment by the Direct Tax Laws (Amendment)
Act, 1989 (3 of 1989), shall apply in the case of reduction
or waiver of penalty or interest in relation to any
assessment for the assessment year commencing on the 1st day
of April, 1988 or any earlier assessment year, with the
modifications that the power under the said sub-section (1)
shall be exercisable only by the Principal Commissioner or
Commissioner and instead of the previous approval of the
Board, the Principal Commissioner or Commissioner shall
obtain the previous approval of the Principal Chief
Commissioner or Chief Commissioner or Principal Director
General or Director General, as the case may be, while
dealing with such case.