Willful attempt to evade tax, etc.
235. (1) A person shall be punishable with rigorous imprisonment for a term which may extend to seven years and with fine, if he willfully attempts in any manner to evade any liability, under this Code, in respect of tax, interest or penalty.
(2) A person shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and with fine, if a person willfully attempts in any manner to evade the payment of any liability, under this Code, in respect of tax, interest or penalty.
(3) For the purposes of this section, a willful attempt to evade any liability, under this Code, in respect of tax, interest or penalty, or its payment, shall include a case where any person-
(a) has in the possession, or control, any books of account or other documents, relevant to any proceeding under this Code, containing a false entry or statement; or
(b) makes, or causes to be made, any false entry, or statement, in such books of account or other documents; or
(c) willfully omits, or causes to be omitted, any relevant entry, or statement, in such books of accounts or other documents; or
(d) causes any other circumstance to exist which will have the effect of enabling such person to evade any liability, under this Code, in respect of tax, penalty or interest, or the payment thereof.
(4) The fine referred to in sub-section (1) or sub-section (2) shall not be less than fifty thousand rupees or more than five lakh rupees.
