Penalty for failure to answer questions, sign statements, furnish information, returns or statements, allow inspections, etc
(1)
A person shall be liable to pay a penalty of ten thousand rupees for each default or failure as mentioned below, if that 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 section 246(1), either to attend to give evidence or to 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; or (d) fails to comply with a notice under section 268(1) or (2) or 270(8) or fails to comply with a direction issued under section 268(5).
(2)
A person shall be liable to pay a penalty of five hundred rupees for every day during which the following failures continue, if that person fails to— (a) comply with a notice under section 175(7); or (b) give the notice of discontinuance of his business or profession as required by section 320(3); or (c) furnish in due time any of the returns, statements or particulars mentioned in or (3) or 507; or (d) allow inspection of any register referred to in or of any entry in such register or to allow copies of such register or of any entry therein to be taken; or (e) furnish the return of income as required under section263(1)(a)(iii) or (iv) or to furnish it within the time allowed and in the manner required under (1) and (2); or (f) deliver or cause to be delivered in due time a copy of the declaration mentioned in (6); or (g) furnish a certificate under (4); or (h) deduct and pay tax under (3); or (i) furnish a statement under (5)(a); or (j) deliver or cause to be delivered in due time a copy of the declaration referred to in (2); or (k) deliver or cause to be delivered the statement within the time specified in (3)(g); or (l) deliver or cause to be delivered a statement within the time as prescribed under (3)(e).