Meaning of “If the failure had not been discovered”

The meaning of if the failure had not been discovered used in section 275A to 280 of the Income Tax Act is not defined in the act itself. But we can take guidance from decisions by various high courts. Here is an excerpt of the court’s order in which the Hon’ble High Court tried to explain the meaning of if the failure had not been discovered.

Meaning of if the failure had not been discovered defined by court

The phrase “if the failure had not been discovered” used in section 275A to 280 of the Income Tax Act came up before hon’ble Himachal Pradesh High Court in Parkash Nath Vs. CIT [1997] 225 ITR 305 (HP) and it explained.

Meaning: Expression ‘if the failure had not been discovered’ occurring in section 276CC(i) does not govern clause (ii) of section 267CC.

Section 275A of Income Tax Act

Contravention of order made under sub-section (3) of section 132.

275A. Whoever contravenes any order referred to in the second proviso to sub-section (1) or sub-section (3) of section 132 shall be punishable with rigorous imprisonment which may extend to two years and shall also be liable to fine.

In this article, you can get guidance from high courts on the meaning of if the failure had not been discovered under section 275A to 280 of the Income Tax Act.

Updated up to Finance Act 2021.