Prosecution in Tax Cases: FAQs

(Impact of Prosecution Proceedings related to Income tax on Business)

Violation of the provisions of the Income Tax Act can have three possible consequences for the assessee:

  1. Pay additional interest on the total tax due.
  2. Pay a penalty over and above the tax due.
  3. Face prosecution proceedings for evading tax.

Prosecution, naturally, is the most serious consequence of tax evasion. This enables the revenue to launch criminal proceedings against the assessee, in conjunction with normal recovery proceedings for the tax due. These proceedings run through the criminal courts and not the normal revenue channels.

In this report, compiled by Siddharth Priyadarshi Sharma, Product Manager at Riverus we will take a look at the Prosecution field of tax law and in particular, we will discuss offences committed by companies, and the liabilities and possible defences for the people in charge.


  • Why Revenue resorts to Prosecute? —————————————-3
  • Prosecution without penalty? ————————————————4
  • Impact on Companies———————————————————6
  • Impact on Partnership Firms ————————————————-9
  • Impact to Company Directors ———————————————–12

The first part in this series – Why Revenue resorts to Prosecute? is now available for you to view.

A consolidated document, is available for you please leave us your contact details: and we will email you the same.

Impact of Prosecution Proceedings on Businesses

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