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CA Final · Direct Tax Laws & International Taxation · Tax Planning, Tax Avoidance and Tax Evasion

Immunity was tendered under section 519 to Sunil Agarwal, who accepted it. Later, the Central Government finds that he wilfully concealed material facts while giving evidence. Which consequence follows under section 519?

If a person given immunity wilfully conceals facts, gives false evidence or breaches conditions, the Central Government may record a finding and the immunity is deemed withdrawn. He can then be tried for the offence or any connected offence and becomes liable to penalty under the Act.

  1. AImmunity continues, but only the penalty is imposed
  2. BImmunity continues for prosecution but is withdrawn for penalty
  3. CThe Government may record a finding, the immunity is deemed withdrawn, and he may be tried for the offence or any other offence connected with the same matter and become liable to penaltyCorrect
  4. DImmunity lapses only after a court conviction for perjury

Explanation

Under section 519(3), if the person wilfully conceals anything, gives false evidence or does not comply with conditions, the Government may record a finding and the immunity is deemed withdrawn. Under section 519(4) he may then be tried for the original or any other connected offence and becomes liable to the penalty he would otherwise have faced. A split withdrawal is not provided.

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