S. 272A: Penalty for failure to answer questions, sign statements, allow inspections and so on.
There are several penalties which may be imposed u/s 272A. Such penalties are explained as under:
S. 272A(1): Refusal to Answer or sign, or default in compliance of notice enforcing attendance or compelling the production of books of accounts.
Any person who commits any of the following defaults, is liable to pay a penalty of Rs. 10,000/- for each default or failure:
- Refusal by any person, legally bound to state the truth of any matter relating to his assessment, to answer questions put to him by an income-tax authority; or
- Refusal to sign any statement, made by any person in the course of any proceedings under this Act, which an income tax authority may legally require him to sign; or
- Failure to attend or produce books of documents by any person to whom a summon is issued u/s 131(1) either to attend to give evidence or produce books of accounts or other documents.
| Section | Nature of default | Minimum penalty | Maximum penalty |
| (1) | (2) | (3) | (4) |
| 272A(1) | Failure to answer questions, sign statements or attend summons u/s 131(1) to give evidence/ produce books of account or other documents. | Rs. 10,000 for each such default or failure | Rs.10,000 for each such default or failure |
Reference:
Section 272A(1)(a), of Income tax act, 1961-
Penalty for failure to answer questions, sign statements, furnish information, returns or statements, allow inspections, etc. u/s 272A
(1) If any person,—
(a) being legally bound to state the truth of any matter touching the subject of his assessment, refuses to answer any question put to him by an income-tax authority in the exercise of its powers under this Act; or
(b) refuses to sign any statement made by him in the course of any proceedings under this Act, which an income-tax authority may legally require him to sign; or
(c) to whom a summons is issued under sub-section (1) of section 131 either to attend to give evidence or produce books of account or other documents at a certain place and time omits to attend or produce books of account or documents at the place or time,
He shall pay, by way of penalty, [a sum of ten thousand rupees] for each such default or failure.