The penalty provisions of section 272AA of the Income Tax Act gets applicable only in case the person fails to comply with the provisions of section 133B of the Income Tax Act. The present article tries to explain provisions of section 272AA along with the connecting provisions of section 133B.

Understanding penalty provisions of section 272AA of the Income Tax Act

The provisions of section 272AA states as under –

  • The provisions are applicable only in case the person fails to comply with the provisions of section 133B of the Income Tax Act.
  • Before imposing a penalty under section 272AA, it is mandatory that the defaulter is given an appropriate opportunity of being heard.

Thus, in order to understand the penalty provisions of section 272AA, it is equally important to understand what the provisions of section 133B say, which is being explained here under.

Understanding connecting provisions of section 133B of Income Tax Act

The provisions of section 133B assigns powers to an Income Tax Authority to collect certain information. As per section 133B, in order to collect any information, the Income Tax Authority has the following powers –

  • The authority can enter any building / place, within the limits of the area assigned, at which the business / profession is carried on.
  • The authority can enter any building / place which is occupied by the person, in respect of which the authority exercises the jurisdiction.
  • The authority may require any proprietor or an employee or any other person to furnish the required information.

Amount of penalty payable under section 272AA

In case of default in complying with the provisions of section 133B, the defaulter would be liable to pay the penalty equal to a sum which may extend to INR 1,000.

It is important to mention here that as per section 273B of the Income Tax Act, if the defaulter proves the reasonable cause of the failure, then no penalty can be levied under section 272AA.

Read Also:-

S. No. Title
1 Section 272BB Penalty for failure to comply section 203A provisions
2 Section 272B Penalty for failure to comply with provisions of PAN
3 Section 272AA Penalty for failure in complying with provisions of section 133B
4 Section 272A Penalty for failure to answer questions or furnish information / returns/ statements or allow inspections etc
5 Section 271J Penalty on professionals for furnishing incorrect information in reports / certificates
6 Section 271I Penalty for failure in furnishing Form 15CA & Form 15CB
7 Section 271H Penalty for late filing/non-filing of TDS or TCS return
8 Penalty for failure in furnishing report or furnishing inaccurate report under section 286 – Section 271GB
9 Section 271GA Penalty for failure in furnishing the information / document in Form 49D as required under section 285A
10 Section 271G Penalty for failure to furnish information / document as per provisions of section 92D
11 Section 271FB Penalty for default in furnishing return of fringe benefits
12 Section 271FAB Penalty for failure to furnish statement / information / document by an eligible investment fund
13 Penalty for providing inaccurate statement of financial transaction or reportable account- Section 271FAA
14 Section 271FA Penalty for failure in furnishing statement of financial transactions or reportable account
15 Section 271E Penalty for contravening provisions of section 269T
16 Section 271DB | Penalty for contravening provisions of section 269SU
17 Section 271DA Penalty for contravening provisions of section 269ST
18 Section 271CA Penalty for failure to collect tax at source (TCS)
19 Section 271D Penalty for contravening provisions of section 269SS
20 Section 271C Penalty for failure / non-deduction / non-payment of TDS
21 TDS Rate Chart for AY 2020-21 and AY 2021-22
22 Section 271BA Penalty for failure to furnish section 92E report
23 Section 271B Penalty for failure to get accounts audited
24 Section 271AAC Penalty in respect of certain specified income
25 Section 271AA Penalty for failure to maintain Transfer Pricing documents
26 Section 271A Penalty for failure to keep / maintain or retain books of accounts, documents
27 Section 270A(1) Penalty for under-reporting & misreporting of income
28 Section 269SU Acceptance of payment through electronic modes
29 Section 234F Late fees for default in filing of income tax return
30 Section 234E Late Fee for default in filing of TDS / TCS returns
31 Section 158BFA(2) – Penalty on undisclosed income for block period
32 Section 140A(3) Penalty for non-payment of self-assessment tax

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