Section 278E of Income Tax Act "Presumption as to culpable mental state"
278E. (1) In any prosecution for any offence under this
Act which requires a culpable mental state on the part of
the accused, the court shall presume the existence of such
mental state but it shall be a defence for the accused to
prove the fact that he had no such mental state with respect
to the act charged as an offence in that prosecution.
Explanation.-In this sub-section, "culpable mental state"
includes intention, motive or knowledge of a fact or belief
in, or reason to believe, a fact.
(2) For the purposes of this section, a fact is said to be
proved only when the court believes it to exist beyond
reasonable doubt and not merely when its existence is
established by a preponderance of probability.
279. (1) A person shall not be proceeded against for an
offence under section 275A, section 275B, section 276,
section 276A, section 276B, section 276BB, section 276C,
section 276CC, section 276D, section 277, section 277A or
section 278 except with the previous sanction of the
Principal Commissioner or Commissioner or Commissioner
(Appeals) or the appropriate authority:
Provided that the Principal Chief Commissioner or Chief
Commissioner or, as the case may be, Principal Director
General or Director General may issue such instructions or
directions to the aforesaid income-tax authorities as he may
deem fit for institution of proceedings under this
sub-section.
Explanation.-For the purposes of this section, "appropriate
authority" shall have the same meaning as in clause (c) of
section 269UA.
(1A) A person shall not be proceeded against for an offence
under section 276C or section 277 in relation to the
assessment for an assessment year in respect of which the
penalty imposed or imposable on him under section 270A or
clause (iii) of sub-section (1) of section 271 has been
reduced or waived by an order under section 273A.
(2) Any offence under this Chapter may, either before or
after the institution of proceedings, be compounded by the
Principal Chief Commissioner or Chief Commissioner or a
Principal Director General or Director General.
(3) Where any proceeding has been taken against any person
under sub-section (1), any statement made or account or
other document produced by such person before any of the
income-tax authorities specified in clauses (a) to (g) of
section 116 shall not be inadmissible as evidence for the
purpose of such proceedings merely on the ground that such
statement was made or such account or other document was
produced in the belief that the penalty imposable would be
reduced or waived, under section 273A or that the offence in
respect of which such proceeding was taken would be
compounded.
28a[(4) The Central Government may make a scheme, by
notification in the Official Gazette, for the purposes of
granting sanction under sub-section (1) or compounding under
sub-section (2), so as to impart greater efficiency,
transparency and accountability by-
(a) eliminating the interface between the income-tax
authority and the assessee or any other person to the extent
technologically feasible;
(b) optimising utilisation of the resources through
economies of scale and functional specialisation;
(c) introducing a team-based sanction to proceed against, or
for compounding of, an offence, with dynamic jurisdiction.
(5) The Central Government may, for the purpose of giving
effect to the scheme made under sub-section (4), by
notification in the Official Gazette, direct that any of the
provisions of this Act shall not apply or shall apply with
such exceptions, modifications and adaptations as may be
specified in the notification:
Provided that no direction shall be issued after the 31st
day of March, 2022.
(6) Every notification issued under sub-section (4) and
sub-section (5) shall, as soon as may be after the
notification is issued, be laid before each House of
Parliament.]
Explanation.-For the removal of doubts, it is hereby
declared that the power of the Board to issue orders,
instructions or directions under this Act shall include and
shall be deemed always to have included the power to issue
instructions or directions (including instructions or
directions to obtain the previous approval of the Board) to
other income-tax authorities for the proper composition of
offences under this section.