Income Tax Ordinance, 2001

CHAPTER-X

PROCEDURE PART X PENALTY

From: 2023-07-01 - To: 0000-00-00 1[***] ______________________________________________________________________ 1-Section (187) omitted vide Finance Act, 2010. The omitted section 187 was as follows: “187. Penalty for making false or misleading statements.-(1) Where a person – (a) makes a statement to i[an income tax authority] that is false or misleading in a material particular or omits from a statement made ii[to an income tax authority any matter or thing without which the statement is false or misleading in a material particular; and i. Substituted for the words “a taxation officer” vide the Finance Ordinance, 2002 (XXVII of 2002 Promulgated on 15th June, 2002) ii. Substituted for the words “a taxation officer” vide the Finance Ordinance, 2002 (XXVII of 2002 Promulgated on 15th June, 2002) (b) the tax liability (including the liability for advance tax under section 147 of the person computed on the basis of the statement is less than it would have been if the statement had not been false or misleading (the difference hereinafter referred to as the “tax shortfall), the person shall be liable for a penalty equal to – (i) where the statement or omission was made knowingly or recklessly, two hundred per cent of the tax shortfall; or (ii) in any other case (other than where sub-section (2) applies), twenty-five per cent of the tax shortfall. (2) In the case of an assessment order under section 120, no penalty shall be imposed under: sub-section (1) to the extent to which the tax shortfall arose as a result of the taxpayer taking a reasonably arguable position on the application of this Ordinance to the taxpayer’s position. (3) A reference in this section to a statement made to iii[an income tax authority] is a reference to a statement made in writing or orally to that iv[authority] acting in the performance of the v[authority’s] duties under this Ordinance, and shall include a statement made – iii. Substituted for the words “a taxation officer” vide the Finance Ordinance, 2002 (XXVII of 2002 promulgated on 15th June, 2002) iv Substituted for the word “officer” vide the Finance Ordinance, 2002 (XXVII of 2002 promulgated on 15th June, 2002) v. Substituted for the…