 |
|
For business information, annual reports, laws, ordinances, regulations and articles. |
|
|
CHAPTER
XI
PENALTIES
108. Penalty
for failure to furnish return of total income and certain statements.- Where any
person has, without reasonable cause, failed to furnish, within the time allowed for
the purpose,-
(a) any return of total income under section 55 or 56, sub-section (1) of section 65,
sub-section (3) of section 72 or sub-section (3) of section 81; or
(b) any certificate, statement, accounts or information under section 51, 139, 140, 141,
142, 143 ,143A ,143B or
144,
the Deputy Commissioner shall impose
upon such person a penalty-
(i) in case of default specified in clause (a) an
amount equal to one tenth of one per cent of the tax payable for each day of default
subject to a minimum of five hundred rupees and a maximum of twenty-five per cent of the
tax payable.
(ii) in case of default specified in clause (b), an amount equal to two thousand rupees
and a further sum equal to two hundred rupees for every day during which the default
continues.
109. Penalty for failure to maintain prescribed accounts.- Where any
person has, without reasonable cause, failed to comply with the provisions of any
order or rule made under or in pursuance of sub-section (2) of section 32, the Deputy Commissioner may impose on him a penalty equal to fifteen per cent of the tax payable, subject to a minimum of two
thousand rupees.
110. Penalty for non-compliance with notice, etc.- Where any person
has, without reasonable cause, failed to comply with any notice issued under section
58 [--] or 61, the Deputy
Commissioner on him a penalty equal to fifty per cent of the amount of tax which would have been avoided if the income as returned by
such person had been accepted as the correct income.
111. Penalty for concealment of income, etc.- (1) Where, in the
course of any proceedings under this Ordinance, the Deputy
Commissioner, the Appellate Additional Commissioner or
the Appellate Tribunal is satisfied that any person has, either in the said proceedings or
in any earlier proceedings relating to an assessment in respect of the same income year,
concealed his income or furnished inaccurate particulars of such income, he or it may
impose upon such person a penalty equal to the the amount of tax
which the said person sought to evade by concealment of his income or
furnishing of inaccurate particulars of such income, as aforesaid.
(2) For the purposes of sub-section (1) and section 119, concealment of income or the
furnishing of inaccurate particulars of income shall include-
(a) the suppression of any item of receipt liable to tax in whole or in part or failure to disclose income chargeable to tax,
[--]
(b) claiming any deduction for, or showing, any expenditure not actually incurred ;and
(c) any act referred to in clauses (aa), (b), (c), (d) and (e) of
sub-section (1) of section 13.
(2A) Notwithstanding anything contained in sub-section (l) or
sub-section (2), where any item of receipt declared by the assessee is claimed by him as
exempt from tax, or where any deduction in respect of any expenditure is claimed by him,
mere disallowance of such claim shall not constitute concealment of income or the
furnishing of inaccurate particulars of income, unless it is proved that the assessee
deliberately claimed exemption from tax in respect of the aforesaid item of receipt or
claimed deduction in respect of such expenditure not actually incurred by him.
(3) An Appellate Additional Commissioner or the Appellate Tribunal,
on making an order under sub-section (1), shall forthwith send a copy thereof to the Deputy Commissioner and thereupon all the provisions of this
Ordinance relating to the recovery of penalty shall apply as if such order were made by
the Deputy Commissioner.
112. Penalty for
failure to give notice of discontinuance of business or profession.- Where any person
fails to comply with the provisions of sub-section (1) or sub-section (2) of section
72, the Deputy Commissioner may impose on him a penalty not
exceeding the amount of the tax payable for the income year in which the business was
discontinued.
113. Penalty in the case of registered firms.- Where a person liable
to penalty under section 109, 110, 111 or 112 is a registered firm, the amount of
penalty shall, notwithstanding anything contained in this Ordinance, be calculated as if
such registered firm were an unregistered firm.
114. Penalty for failure to give notice by liquidator.- Where a
liquidator or a private company fails to give notice of his appointment as required by
sub-section (1) of section 76, the Deputy Commissioner may
impose on him a penalty not exceeding ten thousand rupees.
115. Penalty for obstruction.- Where any person obstructs any
income tax authority in the discharge of his functions under this Ordinance, the Commissioner may impose on such person a penalty not
exceeding ten thousand rupees.
116. Imposition of penalty after notice of hearing, etc.- No
penalty under this Chapter shall be imposed on any person-
(a) by an Deputy Commissioner except with the prior
approval in writing of the Inspecting Additional Commissioner; and
(b) unless such person has been given a reasonable opportunity of being heard,
and the imposition of such penalty shall be without prejudice to any other liability
incurred by such person under this Ordinance, the repealed Act or any other law for the
time being in force [--]
Provided that where a notice for hearing
is given on or after the first day of July, 1990, no order of penalty shall be passed
after the expiration of two years from the end of the financial year in which such notice
was served.
