1 [18AA. Penalty for failure to answerquestions, sign statements, furnish information, allow inspections, etc.-
(1) If any person, -
(a)being legally bound to state the truth of any matter touching the subject of hisassessment, refuses to answer any question put to him by a wealth-tax authority in the exerciseof hispowers under this Act; or
(b)refuses to sign any statement made by him in the course of any proceedings underthis Act, which a wealth-tax authority may legally requirehim to sign; or
(c)to whom a summons is issued under sub-section (1) of section 37 either to attend to give evidence or produce books ofaccount or other documents at a certain place and time, omits to attend orproduce the books of account or documents at the place and time,heshall pay, by way of penalty, a sum which shall not be less than five hundredrupees but which may extend to ten thousand rupees for each such default orfailure:
Providedthat no penalty shall be imposable under clause (c) if the person proves thatthere was reasonable cause for the said failure.
(2) If a person fails to furnish indue time any statement or information which such person is bound to furnish tothe Assessing Officer under section 38, he shall pay, by way of penalty, a sum which shall not beless than one hundred rupees but which may extend to two hundred rupees forevery day during which the failure continues:
Providedthat no penalty shall be imposable under this sub-section if the person provesthat there was reasonable cause for the said failure.
(3) Any penalty imposable undersub-section (1)or sub-section (2)shall be imposed -
(a)in a case where the contravention, failure or default in respect of which suchpenalty is imposable occurs in the course of any proceeding before a wealth-taxauthority not lower in rank than a 2 [Joint Director] or a 2 [JointCommissioner], by such wealth-tax authority;
(b)in any other case, by the Joint Director or the Joint Commissioner.
(4) No order under this section shallbe passed by any wealth-tax authority referred to in sub-section (3) unless the person on whom thepenalty is proposed to be imposed has been heard, or has been given a reasonableopportunity of being heard in the matter, by such authority.
Explanation.-In this section, "wealth-taxauthority" includes a Director General, Director, 2 [Joint Director],3 [Assistant Director or Deputy Director] and aValuation Officer while exercising the powers vested in a court under the Codeof Civil Procedure, 1908(5 of 1908), when trying a suit in respect of thematters specified in sub-section (1) of section 37.]
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1.Substituted by Act 3 of 1989, Section 69 w.e..f 1-4-1989.
2.Substituted by Act, 21 of 1998 w.e.f. 1-10-1998.
3.Substituted by Act, 21 of 1998 w.e.f. 1-10-1998.