Power to tender immunity from
prosecution.
291. (1) The Central Government may, if it is of opinion (the reasons for
such opinion being recorded in writing) that with a view to obtaining the
evidence of any person appearing to have been directly or indirectly concerned
in or privy to the concealment of income or to the evasion of payment of tax on
income 16[it is necessary or expedient so to do], tender to such person immunity
from prosecution for any offence under this Act or under the Indian Penal Code
(45 of 1860), or under any other Central Act for the time being in force and
also from the imposition of any penalty under this Act on condition of his
making a full and true disclosure of the whole circumstances relating to the
concealment of income or evasion of payment of tax on income.
(2) A tender of
immunity made to, and accepted by, the person concerned, shall, to the extent
to which the immunity extends, render him immune from prosecution for any
offence in respect of which the tender was made or from the imposition of any
penalty under this Act.
(3) If it appears
to the Central Government that any person to whom immunity has been tendered
under this section has not complied with the condition on which the tender was
made or is wilfully concealing anything or is giving false evidence, the
Central Government may record a finding to that effect, and thereupon the
immunity shall be deemed to have been withdrawn, and any such person may be
tried for the offence in respect of which the tender of immunity was made or
for any other offence of which he appears to have been guilty in connection
with the same matter and shall also become liable to the imposition of any
penalty under this Act to which he would otherwise have been liable.