Many times the tax authorities requires any information from a person, in such a case, the tax authorities may request such person to answer questions raised by them or may require the person to sign the statements or may issue him a summon for his attendance. Failure to comply with these directions or notices can attract penalty under section 272A(1) Tax authorities also issues notice under Section 142(1)/Section 143(2) or issues direction for special audit under Section 142(2A). In other words, penalty under section 272A(1) shall be levied if a person refused or fails to:
Attend office to give evidence or produce books of account, etc., in c ompliance with summons under section 131(1)
Comply with notice under Section 142(1)/Section 143(2) or fails to comply with direction issued under Section 142(2A)
Penalty leviable under section 272A(1) is Rs. 10,000 for each failure/default.