Proof of entries in records or documents.

493

Entries in the records or other documents in the custody of an income-tax authority shall be admitted in evidence in any proceedings for the prosecution of any person for an offence under this Chapter, and all such entries may be proved by—

• (a) production of the records or other documents in the custody of the income-tax authority containing such entries; or
• (b) production of a copy of the entries certified by the income-tax authority having custody of the records or other documents under its signature and stating that it is a true copy of the original entries and that such original entries are contained in the records or other documents in its custody.

Explanation

Section Summary:

Section 493 of the new income tax law deals with the admissibility of entries in records or documents as evidence in legal proceedings related to tax offences. It specifies how such entries can be proven in court when prosecuting someone for offences under the relevant chapter of the tax law. This section ensures that records maintained by income-tax authorities are legally valid and can be used as evidence.

Key Changes:

• Admissibility of Entries: The section clarifies that entries in records or documents held by income-tax authorities are admissible as evidence in prosecution cases. This is not a new concept but is now explicitly stated in the law.
• Methods of Proof: It outlines two specific methods to prove the authenticity of such entries:
  1. Producing the original records or documents.
  2. Producing a certified copy of the entries, signed by the income-tax authority, confirming it is a true copy of the original.

Practical Implications:

• For Taxpayers: This section strengthens the legal standing of records maintained by tax authorities. If a taxpayer is prosecuted for tax offences, the authorities can use their records as evidence, making it harder for the taxpayer to dispute the authenticity of such records.
• For Income-Tax Authorities: It simplifies the process of presenting evidence in court, as certified copies of entries are now explicitly recognized as valid proof.
• For Legal Proceedings: This provision ensures smoother prosecution of tax-related offences by reducing disputes over the authenticity of records.

Critical Concepts:

• Admissibility of Evidence: Refers to the legal acceptance of records or documents as valid proof in court. This section ensures that entries in tax authority records meet this standard.
• Certified Copy: A copy of the original document that has been verified and signed by the income-tax authority, confirming its accuracy and authenticity.

Compliance Steps:

• For Taxpayers: Ensure all records and documents submitted to tax authorities are accurate and complete, as they may be used as evidence in legal proceedings.
• For Income-Tax Authorities: Maintain proper custody of records and ensure certified copies are prepared accurately and signed by authorized personnel when required for legal purposes.

Examples:

• Scenario 1: A taxpayer is accused of underreporting income. The income-tax authority produces a certified copy of the taxpayer’s filed returns, showing discrepancies. The court accepts this as valid evidence under Section 493.
• Scenario 2: During a prosecution for tax evasion, the tax authority presents original bank statements obtained during an investigation. The court admits these as evidence under this section.

This section reinforces the legal framework for using tax authority records in prosecutions, ensuring clarity and efficiency in tax-related legal proceedings.