Section - 271J and 273B - Penalty on professionals
for furnishing incorrect information in statutory report or certificate -
The Income Tax Act in relation to
various compliances rely on the certificates by qualified professionals to
ensure that the information is correct. While the provisions exist to penalize
the defaulting assessees there is no provision to penalize the professional who
is responsible for certifying the same.
In order to make such persons
responsible and to ensure that they exercise due diligence before making such
certification, a new section 271J is proposed to provide that if an accountant
or a merchant banker or registered valuer furnishes inaccurate information in
any report or certificate, the assessing officer or the CIT(A) may direct him
to pay a penalty of Rs.10000/- for each such report or certificate.
By amendment of section 273B it
is proposed to provide that if a person proves that there was reasonable cause
for the failure, penalty shall not be imposable under this section.
amendment will be effective form 1st April 2017.