Section 490 — Presumption of Culpable Mental State | ITA 2025

Section 490 of the Income-tax Act, 2025 corresponds to s. 278 E of the Income-tax Act, 1961. STATUTORY ARCHITECTURE In any prosecution requiring culpable mental state, court shall presume the existence of such mental state; but the…

Section 490 — - PRESUMPTION OF CULPABLE MENTAL STATE

Section 490 of the Income-tax Act, 2025 corresponds to s. 278E of the Income-tax Act, 1961.

Statutory text — Income-tax Act, 2025

( 1) In any prosecution for any offence under this Act, which requires a culpable mental state on the part of the accused, the court shall presume the existence of such mental state but it shall be a defence for the accused to prove the fact that he had no such mental state with respect to the Act charged as an offence in that prosecution.

(2) For the purposes of this section, the expression “culpable mental state” includes intention, motive or knowledge of a fact or belief in, or reason to believe, a fact.

(3) For the purposes of this section, a fact is said to be proved only when the court believes it to exist beyond reasonable doubt and not merely when its existence is established by a preponderance of probability. Prosecution to be at instance of Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner.

STATUTORY ARCHITECTURE

In any prosecution requiring culpable mental state, court shall presume the existence of such mental state; but the assessee may prove that he had no such mental state.

PRACTITIONER PLANNING NOTES

Reverse-burden provision; constitutional validity upheld in Sasi Enterprises v. ACIT (2014) 361 ITR 163 (SC).
Assessee must adduce affirmative evidence of bona fide error / no intent to evade.

CROSS-REFERENCES

s. 491 [279] -- sanction and compounding.
s. 486 [278AA] -- reasonable cause.
s. 487 [278B] -- offences by companies.
s. 490 [278E] -- presumption of culpable mental state.

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INCOME-TAX ACT, 2025	INCOME-TAX ACT, 1961
2025 provision	1961 counterpart
s. 490 -- Presumption of Culpable Mental State	s. 278E