Penalty for failure to comply with section 186: assessing officer may impose a penalty equal to the sum received in contravention. Penalty for failure to comply with the provisions of section 186 authorises the assessing officer to impose a penalty equal to the sum received by a person in contravention; the provision creates a receipt based penalty mechanism under the Income tax Act empowering assessment authorities to levy a penalty equal to the amount obtained through the noncompliant transaction.