Failure to produce accounts and documents

     The existing provisions of section 276D of the Act provide that if a person willfully fails to produce accounts and documents as required in any notice issued under sub-section (1) of section 142 or willfully fails to comply with a direction issued to him under sub-section (2A) of section 142, he shall be punishable with rigorous imprisonment for a term which may extend to one year or with fine equal to a sum calculated at a rate which shall not be less than four rupees or more than ten rupees for every day during which the default continues, or with both.

     It is proposed to amend the provisions of the said section so as to provide that if a person willfully fails to produce accounts and documents as required in any notice issued under sub-section (1) of section 142 or willfully fails to comply with a direction issued to him under sub-section (2A) of section 142, he shall be punishable with rigorous imprisonment for a term which may extend to one year and with fine.

     This amendment will take effect from 1st October, 2014.

[Clause 69]

Failure to produce accounts: amendment imposes imprisonment and fine for willful non production, strengthening enforcement. The amendment provides that a person who willfully fails to produce accounts and documents in response to a notice under subsection (1) of section 142, or willfully fails to comply with a direction under subsection (2A) of section 142, shall be punishable with rigorous imprisonment and with fine, replacing the prior alternative of imprisonment or a daily fine. The change takes effect from 1st October, 2014.