Amendment of section 271AA.
94. In section 271AA of the Income-tax Act, as so substituted by section 93 of this Act, for the words “international transaction”, the words “international transaction or specified domestic transaction” shall be substituted with effect from the 1st day of April, 2013.
Notes on Clauses:
Clause 94 of the Bill seeks to amend section 271AA of the Income-tax Act (as substituted by clause 93 of this Bill) relating to penalty for failure to keep and maintain information and document in respect of international transaction.
The existing provision of the aforesaid section 271AA provides that if any person 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 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.
It is proposed to amend the aforesaid section so as to include therein the reference of “specified domestic transaction” to provide that in the cases where information and document in respect of specified domestic transaction has not been maintained, or such specified domestic transaction has not been reported, or the assessee maintains or furnishes incorrect information or documents, a penalty of two per cent. of the value of the specified domestic transaction shall be levied.
This amendment will take effect from 1st April, 2013 and will, accordingly, apply in relation to the assessment year 2013-2014 and subsequent assessment years.
