CA Final · Direct Tax Laws & International Taxation · Tax Planning, Tax Avoidance and Tax Evasion
Mehta Textiles Ltd, an Indian company, is under investigation for concealing income. Anil, a former accountant of the company who was privy to the concealment, offers to give evidence. Under the Income-tax Act, 2025, which statement about tendering immunity to Anil is correct?
The Central Government may tender immunity from prosecution and penalty, with reasons recorded in writing, on condition that the person makes a full and true disclosure of the whole circumstances of the concealment or evasion. The Assessing Officer holds no such power, and the immunity can be withdrawn.
- AThe Central Government may tender immunity from prosecution and penalty, for reasons recorded in writing, on condition of full and true disclosure of the whole circumstancesCorrect
- BThe Assessing Officer may tender immunity from prosecution under the Bharatiya Nyaya Sanhita, 2023, without recording any reasons
- CImmunity can be tendered only from penalty under the Act and never from prosecution
- DImmunity once tendered cannot be withdrawn even if Anil wilfully conceals facts
Explanation
Section 519 empowers the Central Government to tender immunity from prosecution and penalty, for reasons recorded in writing, if the person makes a full and true disclosure. The Assessing Officer has no such power. Immunity extends to offences under the Act, the BNS and other Central Acts, and is deemed withdrawn on non-compliance, wilful concealment or false evidence.
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