Failure to furnish certain information u/s 133B attracts penalty which may extend upto Rs.1000. No penalty may be imposed on the Assessee if he proves that there was a reasonable cause for the default.
Penalty may be imposed by the Joint Commissioner or the Assistant Director or the Deputy Director or the Assessing officer.
Powers to collect certain information under sec 133B:
The Income tax authority has the right to enter any building whether principal place of business or other for the purpose of collecting information which may be useful or relevant to, the purpose of this act. It can enter the premises only during the working hours.
| Section | Nature of default | Minimum penalty | Maximum penalty |
| (1) | (2) | (3) | (4) |
| 272AA | Failure to comply with the provisions of section 133B | Any amount up to Rs. 1,000 | Rs.1,000 |
Reference:
Section 272AA, 133B of Income tax act, 1961-
Penalty for failure to comply with the provisions of section 133B under sec 272AA
(1) If a person fails to comply with the provisions of section 133B, he shall, on an order passed by the Joint Commissioner, Assistant Director or Deputy Director or the Assessing Officer, as the case may be, pay, by way of penalty, a sum which may extend to one thousand rupees.
(2) No order under sub-section (1) shall be passed unless the person on whom the penalty is proposed to be imposed is given an opportunity of being heard in the matter.
Power to collect certain information u/s 133B
(1) Notwithstanding anything contained in any other provision of this Act, an income-tax authority may, for the purpose of collecting any information which may be useful for, or relevant to, the purposes of this Act, enter—
(a) any building or place within the limits of the area assigned to such authority ; or
(b) any building or place occupied by any person in respect of whom he exercises jurisdiction,
at which a business or profession is carried on, whether such place be the principal place or not of such business or profession, and require any proprietor, employee or any other person who may at that time and place be attending in any manner to, or helping in, the carrying on of such business or profession to furnish such information as may be prescribed.
(2) An income-tax authority may enter any place of business or profession referred to in sub-section (1) only during the hours at which such place is open for the conduct of business or profession.
(3) For the removal of doubts, it is hereby declared that income-tax authority acting under this section shall, on no account, remove or cause to be removed from the building or place wherein he has entered, any books of account or other documents or any cash, stock or other valuable article or thing.
Explanation.—
In this section, “income-tax authority” means a [Joint Commissioner], an [Assistant Director] [or Deputy Director] or an [Assessing] Officer, and includes an Inspector of Income-tax who has been authorised by the [Assessing] Officer to exercise the powers conferred under this section in relation to the area in respect of which the [Assessing] Officer exercises jurisdiction or part thereof.]