Consequence of Non-Compliance with a notice issued under section 142(1)(i) or u/s 142(1)(ii) or 143(2) or a direction u/s 142(2A). - Income Tax - Ready Reckoner - Income Tax

Consequence of Non-Compliance with a notice issued under section 142(1)(i) or u/s 142(1)(ii) or 143(2) or a direction u/s 142(2A) Failure to comply with the notice u/s 142(1) or to get accounts audited as per directions issued u/s 142(2A) may result in:- Best judgement assessment u/s 144 Penalty u/s 271(1)(b) which has been fixed at ₹ 10,000/- Prosecution u/s 276D with rigorous imprisonment which may extend to one year or with fine Issue of a warrant of authorisation u/s 132 for conducting search. Note:- If the assessee proves that the non-compliance with the direction u/s 142(2A) was not because of his fault but negligence or refusal of the auditor, then best judgment assessment shall not be made and the proceedings shall be dropped. Opportunity of being heard shall have to be given to the assessee before making best judgement assessment and before levying penalty or launching prosecution.