Section 191: Prosecution for non-compliance with certain statutory obligations

191. Prosecution for non-compliance with certain statutory obligations. — (1) Any person who, without reasonable excuse, fails to — the person shall be liable for a penalty equal to – (i) where the statement or omission was made knowingly or recklessly, two hundred per cent of the tax shortfall; or (ii) in any other case (other than where sub-section (2) applies), twenty-five per cent of the tax shortfall. (2) In the case of an assessment order under section 120, no penalty shall be imposed under sub-section (1) to the extent to which the tax shortfall arose as a result of the taxpayer taking a reasonably arguable position on the application of this Ordinance to the taxpayer’s position. (3) A reference in this section to a statement made to an income tax authority is a reference to a statement made in writing or orally to that authority acting in the performance of the authority’s duties under this Ordinance, and shall include a statement made - (a) in an application, certificate, declaration, notification, return, objection or other document made, prepared, given, filed or furnished under this Ordinance; (b) in information required to be furnished under this Ordinance; (c) in a document furnished to an income tax authority otherwise than pursuant to this Ordinance; (d) in answer to a question asked of a person by an income tax authority; or (e) to another person with the knowledge or reasonable expectation that the statement would be conveyed to an income tax authority.” 1[(a) comply with a notice under sub-section (3)2[and sub-section (4)] of section 114 3[, sub-section (3) of section 117] or sub-section (1) of section 116;] (b) pay advance tax as required under section 147; (c) comply with the obligation under Part V of this Chapter4[or chapter XII] to collect or deduct tax and pay the tax to the Commissioner; 5[(ca) furnish particulars or complete or accurate particulars of persons mentioned in sub-section (1) of section 165;] (d) comply with a notice served under section 140 or 176; (e) comply with the requirements of 6[sub-section (3) or sub-section (4) of] section 141; 7[ ] (f ) provide reasonable facilities and assistance as required under sub- section (3) of section 175 8[; 9[ ] (g) declare business bank account(s) in the registration form or updated registration form or return of income or wealth statement] 10[; (h) integrate his business with Board’s computerized system; or (i) generate tax invoice verifiable by the Board’s system;”; shall commit an offence punishable on conviction with a fine or imprisonment for a term not exceeding one year, or both. (2) If a person convicted of an offence under clause (a) of sub-section (1) fails, without reasonable excuse, to furnish the return of income or wealth statement to which the offence relates within the period specified by the Court, the person shall commit a further offence punishable on conviction with a fine 11[not exceeding fifty thousand rupees] or imprisonment for a term not exceeding two years, or both.

Effective date: 2001-09-13

Related sections