Substitution of new section for section 271AA.
93. For section 271AA of the Income-tax Act, the following section shall be substituted with effect from the 1st day of July, 2012, namely:––
Penalty for failure to keep and maintain information and document, etc., in respect of certain transactions.
“271AA. Without prejudice to the provisions of section 271 or section 271BA, if any person in respect of an international transaction,––
(i) fails to keep and maintain any such information and document as required by sub-section (1) or sub-section (2) of section 92D;
(ii) fails to report such transaction which he is required to do so; or
(iii) maintains or furnishes an incorrect information or document, the Assessing Officer or Commissioner (Appeals) may direct that such person shall pay, by way of penalty, a sum equal to two per cent. of the value of each international transaction entered into by such person.”.
Notes on Clauses:
Clause 93 of the Bill seeks to substitute section 271AA of the Income-tax Act relating to penalty for failure to keep and maintain information and document, etc., in respect of certain transactions.
The existing provisions of the aforesaid section 271AA provide that if a person, who has entered into international transaction as defined in section 92B, fails to keep and maintain any such information and document as required by sub-section (1) or sub-section (2) of section 92D, the Assessing Officer or the Commissioner (Appeals) may direct such person shall pay, by way of penalty, a sum equal to two per cent. of the value of each international transaction entered into by such person.
It is proposed to substitute the aforesaid section so as to provide the levy of penalty under the said section also in case where such person fails to report such transaction which he is required to do so; or maintains or furnishes an incorrect information or document.
This amendment will take effect from 1st July, 2012.
