Section 29 - Insertion of new section 278E - Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986

29. Insertion of new section 278E. In the Income-tax Act, after section 278D, the following section shall be inserted, namely :- 278E. Presumption as to culpable mental state. (1) In any prosecution for any offence under this Act which requires a culpable mental state on the part of the accused, the court shall presume the existence of such mental state but it shall be a defence for the accused to prove the fact that he had no such mental state with respect to the act charged as an offence in that prosecution. Explanation- In this sub-section, culpable mental state includes intention, motive or knowledge of a fact, or belief in, or reason to believe, a fact. (2) For the purposes of this section, a fact is said to be proved only when the court believes it to exist beyond reasonable doubt and not merely when its existence is established by a preponderance of probability. .