Section 47 IT Act: Factors to be taken into account by the adjudicating officer

Information Technology Act, 2000

Section 47 IT Act at a Glance

Section 47 IT Act lists three factors an adjudicating officer must take into account when fixing the amount of compensation under Chapter IX. These factors are quantifiable gain from unfair advantage, loss caused to any person, and repetition of the default.

Section 47 IT Act Bare Act Text

47. Factors to be taken into account by the adjudicating officer.

While adjudging the quantum of compensation under this Chapter, the adjudicating officer shall have due regard to the following factors, namely:—

(a) the amount of gain of unfair advantage, wherever quantifiable, made as a result of the default;

(b) the amount of loss caused to any person as a result of the default;

(c) the repetitive nature of the default.

Section 47 IT Act in Simple Words

Section 47 IT Act sets out the factors that an adjudicating officer must take into account while deciding the quantum (amount) of compensation under Chapter IX of the IT Act. Chapter IX covers penalties, compensation, and adjudication, including compensation claims inquired into by an adjudicating officer under Section 46 IT Act (such as claims under Section 43 IT Act or Section 45 IT Act).

Section 47 IT Act requires the adjudicating officer to give due regard to three listed factors in order. Under clause (a), the officer considers the amount of gain from unfair advantage made as a result of the default, wherever that amount can be quantified. Under clause (b), the officer considers the amount of loss caused to any person as a result of the default. Under clause (c), the officer considers the repetitive nature of the default, meaning whether the default occurred repeatedly.

The qualifier "wherever quantifiable" applies to clause (a) for the gain made from unfair advantage. Section 47 IT Act creates no offence or penalty of its own; instead, it guides how the adjudicating officer assesses compensation amounts under Chapter IX.

When Section 47 IT Act Applies

  • The adjudicating officer is deciding the amount of compensation to award under Chapter IX of the IT Act.
  • Clause (a): due regard must be given to the amount of gain from unfair advantage made as a result of the default, wherever quantifiable.
  • Clause (b): due regard must be given to the amount of loss caused to any person as a result of the default.
  • Clause (c): due regard must be given to the repetitive nature of the default.

Example of Section 47 IT Act

Anirudh accesses Nirmala's computer resource in Agra without permission under Section 43 IT Act on three occasions. The repeated defaults cause Nirmala a financial loss of ₹4 lakh and bring Anirudh a quantifiable gain of ₹2 lakh from the unfair advantage obtained through the unauthorised access. Nirmala files a claim before the adjudicating officer under Section 46 IT Act, and after inquiry the officer finds the contravention proved. While fixing the amount of compensation to award to Nirmala, Section 47 IT Act requires the adjudicating officer to consider Anirudh's quantifiable ₹2 lakh gain under clause (a), Nirmala's ₹4 lakh loss under clause (b), and the repeated nature of the three defaults under clause (c).

FAQs on Section 47 IT Act

What is Section 47 IT Act?▼

Section 47 IT Act specifies three factors that an adjudicating officer must take into account while deciding the amount of compensation under Chapter IX of the IT Act. Those factors are any quantifiable gain from unfair advantage resulting from the default, the loss caused to any person, and the repetitive nature of the default.

How many factors must an adjudicating officer consider under Section 47 IT Act?▼

Three factors. Under clauses (a), (b), and (c) of Section 47 IT Act, the officer must give due regard to quantifiable gain from unfair advantage, the amount of loss caused to any person, and whether the default was repetitive.

Must the gain under clause (a) of Section 47 IT Act always be quantified?▼

Only wherever quantifiable. Clause (a) of Section 47 IT Act directs the adjudicating officer to consider the amount of gain from unfair advantage wherever it can be quantified, alongside the loss caused under clause (b) and the repetitive nature of the default under clause (c).

Is consideration of the three factors in Section 47 IT Act optional for the adjudicating officer?▼

No. Section 47 IT Act makes it mandatory for the adjudicating officer to give due regard to the listed factors while deciding the amount of compensation under Chapter IX.

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Disclaimer: This is for informational purposes only. Always consult a qualified advocate for legal advice.

Sources: Bare Act Text, Information Technology Act, 2000 ·