Amended and updated notes on section 278AA of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Punishment not to be imposed in certain cases.
Chapter XXII (Sections 275A to 280D) of the Income Tax Act 1961 deals with the provisions related to offences and prosecutions. Section 278AA of IT Act 1961 provides for Punishment not to be imposed in certain cases.
Recently, we have discussed in detail section 278A (Punishment for second and subsequent offences) of IT Act 1961.
Today, we learn the provisions of section 278AA of Income-tax Act 1961 as amended by the Finance Act 2022. The amended provision of section 278AA is effective for financial year 2022-23 relevant to the assessment year 2023-24.
In this article, you will learn detail of the provisions of section 278AA of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.
Section-278AA: Punishment not to be imposed in certain cases
Notwithstanding anything contained in the provisions of section 276A, section 276AB, or section 276B or section 276BB, no person shall be punishable for any failure referred to in the said provisions if he proves that there was reasonable cause for such failure.
[Section 278AA amended (inserted) w.e.f. 1-April-2022 by the Finance Act 2022]