Before a tax offence under sections 473‑484 can be prosecuted, the tax authority must first obtain written approval from the Principal Commissioner, Commissioner (Appeals) or Joint Commissioner (Appeals). The senior commissioners can also give directions to tax officials on how to start such proceedings. If a penalty for the same assessment year has been reduced or waived under section 439, offences under sections 478 and 482 cannot be pursued. Offences may be compounded by the senior commissioners at any stage, and statements made to tax authorities are not excluded as evidence merely because the taxpayer expected a reduced penalty or because the offence was later compounded.
📜 Official text of the section +
491. (1) A person shall not be proceeded against for an offence under section 473,
474, 475, 476, 477, 478, 479, 480, 481, 482, 483 or 484 except with the pre -
vious sanction of the Principal Commissioner or Commissioner or Commissioner
(Appeals) or Joint Commissioner (Appeals).
(2) The Principal Chief Commissioner or Chief Commissioner or Principal Director
General or Director General may issue such instructions or directions to the in -
come-tax authorities mentioned in sub-section (1) as he may deem fit for institution
of proceedings under that sub-section.
(3) A person shall not be proceeded against for an offence under section 478 or 482
in relation to the assessment for a tax year in respect of which the penalty imposed
or imposable on him under section 439 has been reduced or waived by an order
under section 469.
(4) Any offence under this Chapter may be compounded, either before or after
the institution of proceedings, by the Principal Chief Commissioner or Chief
Commissioner or a Principal Director General or Director General.
(5) 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 income-tax authority specified in section 236(a) to (k) shall not be inadmissible
as evidence for the purpose of such proceedings merely on the ground that—
( a) such statement was made or such account or document was produced in
the belief that the penalty imposable would be reduced or waived, under
section 469; or
( b) the offence for which such proceeding was taken would be compounded.
(6) The power of the Board to issue orders, instructions or directions under this Act
shall include 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.
Certain offences to be non-cognizable.
Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.