Section 278A — Punishment for second and subsequent offences
Case Laws & Commentary — Income-tax Act, 1961 (as amended by the Finance Act, 2026) — bharattax.co Treatise
Status: Live. Enhanced punishment for repeat offenders.
Finance Act, 2026: AMENDED w.e.f. 1 March 2026 — rigorous imprisonment converted to simple; maximum reduced from seven years to three years (see amendment note).
Mechanism: On a second or subsequent conviction under specified sections (276B, 276BB, 276C(1), 276CC, 276DD, 276E, 277, 278), enhanced punishment applies.
Litigation profile: Sparse — no direct reported merits authority; a sentencing-enhancement provision.
A. COMMENTARY
Recidivist enhancement
Section 278A operates only after a first conviction. Where a person already convicted of an offence under section 276B, 276BB, 276C(1), 276CC, 276DD, 276E, 277 or 278 is again convicted under any of those provisions, the second and every subsequent offence carries enhanced punishment. The provision presupposes a prior conviction and a fresh conviction; it does not create a substantive offence of its own but graduates the sentence for the habitual defaulter.
FA 2026 Amendment (w.e.f. 1 March 2026)
By section 30 of the Finance Act, 2026, with effect from 1 March 2026, in section 278A the word 'rigorous' is replaced by 'simple', and the word 'seven' (years) is replaced by 'three'. The enhanced punishment for a repeat offence therefore becomes simple imprisonment for a term not less than six months but which may extend to three years (instead of seven years) and fine. This aligns the recidivist provision with the across-the-board softening of Chapter XXII by the Finance Act, 2026. The verbatim text in Part B is the pre-amendment text.
Practice note
Because section 278A bites only on a second conviction under the enumerated sections, it has generated no independent merits jurisprudence; its operation is contingent on the substantive convictions, the law on which is collected under the relevant sections (notably 276B, 276C, 276CC, 277, 278).
B. STATUTORY TEXT (verbatim — pre-Finance Act, 2026 text)
The text reproduced is the pre-Finance Act, 2026 text; from 1 March 2026 read 'simple' for 'rigorous' and 'three' for 'seven' years — see the amendment note above.
Punishment for second and subsequent offences.
278A. If any person convicted of an offence under section 276B or section 276BB or sub-section (1) of section 276C or section 276CC or section 276DD or section 276E or section 277 or section 278 is again convicted of an offence under any of the aforesaid provisions, he shall be punishable for the second and for every subsequent offence with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine.
C. AUTHORITIES
There is no reported merits decision on section 278A in isolation (candour rule). Its application depends on prior convictions under the substantive prosecution sections, whose authorities are collected in those sections of the Treatise.
Cognate authority — the substantive offences enhanced
Madhumilan Syntex Ltd. v. Union of India (2007) 290 ITR 199 (SC)
Court/Year Supreme Court, 2007.
Holding Completion of the section 276B offence — the kind of conviction that, if repeated, triggers section 278A enhancement.
Prakash Nath Khanna v. CIT (2004) 266 ITR 1 (SC)
Court/Year Supreme Court, 2004.
Holding Section 276CC non-filing offence — a repeat of which would attract section 278A.
CHAPTER XXII — OFFENCES AND PROSECUTIONS
Section 278A — Punishment for second and subsequent offences
Case Laws & Commentary — Income-tax Act, 1961 (as amended by the Finance Act, 2026) — bharattax.co Treatise
Status: Live. Enhanced punishment for repeat offenders.
Finance Act, 2026: AMENDED w.e.f. 1 March 2026 — rigorous imprisonment converted to simple; maximum reduced from seven years to three years (see amendment note).
Mechanism: On a second or subsequent conviction under specified sections (276B, 276BB, 276C(1), 276CC, 276DD, 276E, 277, 278), enhanced punishment applies.
Litigation profile: Sparse — no direct reported merits authority; a sentencing-enhancement provision.
A. COMMENTARY
Recidivist enhancement
Section 278A operates only after a first conviction. Where a person already convicted of an offence under section 276B, 276BB, 276C(1), 276CC, 276DD, 276E, 277 or 278 is again convicted under any of those provisions, the second and every subsequent offence carries enhanced punishment. The provision presupposes a prior conviction and a fresh conviction; it does not create a substantive offence of its own but graduates the sentence for the habitual defaulter.
FA 2026 Amendment (w.e.f. 1 March 2026)
By section 30 of the Finance Act, 2026, with effect from 1 March 2026, in section 278A the word 'rigorous' is replaced by 'simple', and the word 'seven' (years) is replaced by 'three'. The enhanced punishment for a repeat offence therefore becomes simple imprisonment for a term not less than six months but which may extend to three years (instead of seven years) and fine. This aligns the recidivist provision with the across-the-board softening of Chapter XXII by the Finance Act, 2026. The verbatim text in Part B is the pre-amendment text.
Practice note
Because section 278A bites only on a second conviction under the enumerated sections, it has generated no independent merits jurisprudence; its operation is contingent on the substantive convictions, the law on which is collected under the relevant sections (notably 276B, 276C, 276CC, 277, 278).
B. STATUTORY TEXT (verbatim — pre-Finance Act, 2026 text)
The text reproduced is the pre-Finance Act, 2026 text; from 1 March 2026 read 'simple' for 'rigorous' and 'three' for 'seven' years — see the amendment note above.
Punishment for second and subsequent offences.
278A. If any person convicted of an offence under section 276B or section 276BB or sub-section (1) of section 276C or section 276CC or section 276DD or section 276E or section 277 or section 278 is again convicted of an offence under any of the aforesaid provisions, he shall be punishable for the second and for every subsequent offence with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine.
C. AUTHORITIES
There is no reported merits decision on section 278A in isolation (candour rule). Its application depends on prior convictions under the substantive prosecution sections, whose authorities are collected in those sections of the Treatise.
Cognate authority — the substantive offences enhanced
Madhumilan Syntex Ltd. v. Union of India (2007) 290 ITR 199 (SC)
Court/Year Supreme Court, 2007.
Holding Completion of the section 276B offence — the kind of conviction that, if repeated, triggers section 278A enhancement.
Prakash Nath Khanna v. CIT (2004) 266 ITR 1 (SC)
Court/Year Supreme Court, 2004.
Holding Section 276CC non-filing offence — a repeat of which would attract section 278A.