Guidelines Issued for Prosecution on Willful Tax Evasion Under Sections 276C, 276D, and Wealth-tax Act Provisions

The circular outlines instructions regarding prosecution under the Income Tax Act, 1961, as amended by the Taxation Laws (Amendment) Act, 1975. It emphasizes initiating prosecution for willful attempts to evade taxes, penalties, or interest under sections 276C(1) and 276C(2), and for failing to comply with audit directions under section 276D. It clarifies that section 276C(1) covers broader cases of willful tax evasion compared to section 277. Similar provisions are included in the Wealth-tax Act under sections 35A(1) and 35A(2), and the instructions for prosecution apply to both Income-tax and Wealth-tax Acts.

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