Prosecution for failure to produce accounts and documents [Section 276D]
- Nature of Default
Prosecution may be initiated if a person wilfully:
Fails to produce, or causes failure in producing, books of accounts or documents as required under a notice issued under section 142(1); or
Fails to get accounts audited or inventory valued in compliance with directions issued under section 142(2A).
- Period of Imprisonment
Punishable with rigorous imprisonment for a term which may extend to 1 year and with fine. Prosecution requires prior approval of the Principal Commissioner, Commissioner, Commissioner (Appeals), or other prescribed authority
- Penalty for under-reporting of income
Under-reporting of income attracts penalty under Section 272A.
- Relaxation from Prosecution
Immunity from prosecution may be granted by the Principal Commissioner/Commissioner, but it will be withdrawn if the assessee fails to meet the required conditions and according to CBDT guidelines, the offence under this provision is compoundable.