While presenting Budget 2020 finance minister proposes about the Insertion of a new section for the penalty to a person who to evade tax liability made any false entry or omission of any entry which is important for computation.
If during any proceedings under this act, if assessing officer found any malpractice in the books of accounts maintained by assessee, then he shall direct that person to pay penalty.
The penalty should be a sum equal to the aggregate amount of such false entry or omitted made by assessee in the books of accounts.
The new section 271AAD of the Income tax act inserted elaborates as:
(1) Without prejudice to any other provisions of this Act, if during any proceeding under this Act, it is found that in the books of account maintained by any person there is—
(i) a false entry; or
(ii) an omission of any entry which is relevant for computation of total income of such person, to evade tax liability, the Assessing Officer (AO) may direct that such person shall pay by way of penalty a sum equal to the aggregate amount of such false or omitted entry.
(2) Without prejudice to the provisions of sub-section (1), the Assessing Officer (AO) may direct that any other person, who causes the person referred to in sub-section (1) in any manner to make a false entry or omits or causes to omit any entry referred to in 50 that sub-section, shall pay by way of penalty a sum equal to the aggregate amount of such false or omitted entry.
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