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Income-tax Act, 1961 · Chapter XXII: Offences and Prosecutions

Section 279: Prosecution to be at instance of Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner

The Income-tax Act, 1961 was repealed by the Income-tax Act, 2025 from 1 April 2026. The text is kept here because the judgments below apply it.

In plain words

This section requires prior approval from specific income-tax authorities before prosecuting certain tax offences. It allows higher officials to direct these proceedings. It also permits compounding of offences and clarifies that statements made in belief of penalty reduction or compounding are not inadmissible as evidence solely for that reason.

  • Prosecution for offences under sections 275A, 275B, 276, 276A, 276B, 276BB, 276C, 276CC, 276D, 277, 277A or 278 needs previous sanction.
  • Sanction must come from the Principal Commissioner or Commissioner, Commissioner (Appeals), or the appropriate authority.
  • The Principal Chief Commissioner or Chief Commissioner may issue instructions to these authorities for instituting proceedings.
  • No prosecution for section 276C or 277 if penalty under section 270A or clause (iii) of sub-section (1) of section 271 was reduced or waived under section 273A.
  • Offences may be compounded by the Principal Chief Commissioner or Chief Commissioner or a Principal Director General or Director General.
  • Statements or documents produced in belief of penalty reduction or compounding are not inadmissible as evidence merely on that ground.
  • The Board has power to issue instructions to other authorities for the proper composition of offences.

A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.

Official text

[(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. [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.]

Source: India Code (Legislative Department), the text of the Act as it stood before its repeal. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.

Supreme Court judgments citing the section 279