Section 272AA — Penalty for Failure to Comply with the Provisions of Section 133B
Case Laws & Commentary — Income-tax Act, 1961 (as amended by the Finance Act, 2026) — bharattax.co Treatise
Status: Live but minor. A penalty up to Rs. 1,000 for failure to comply with section 133B (the power of an income-tax authority to collect certain information by visiting business premises and serving the prescribed form). Subject to reasonable cause under section 273B.
Finance Act, 2026: No amendment by the Finance Act, 2026.
Mechanism: Failure to comply with section 133B (furnishing the prescribed information on the authority’s visit) → penalty up to Rs. 1,000 → unless reasonable cause is shown under section 273B.
Litigation profile: Negligible direct litigation; the section is minor and the quantum small.
A. COMMENTARY
A small penalty for a survey-type information default
Section 133B empowers an income-tax authority to enter business/professional premises and collect specified information through the prescribed form. Section 272AA penalises non-compliance with a modest penalty of up to Rs. 1,000. The low ceiling reflects the limited, information-gathering nature of section 133B.
B. STATUTORY TEXT (verbatim)
Reproduced from the Income-tax Act, 1961 as amended up to the Finance Act, 2025; Finance Act, 2026 changes are noted above.
Penalty for failure to comply with the provisions of section 133B.
272AA. (1) If a person fails to comply with the provisions of section 133B, he shall, on an order passed by
the Joint Commissioner, Assistant Director or Deputy Director or the Assessing Officer, as the case may be,
pay, by way of penalty, a sum which may extend to one thousand rupees.
(2) No order under sub-section (1) shall be passed unless the person on whom the penalty is proposed to be
imposed is given an opportunity of being heard in the matter.
C. AUTHORITIES
No direct authority of note exists; the candour rule applies. The governing safeguard is section 273B reasonable cause.
1. Minor information-default penalty
Hindustan Steel Ltd v. State of Orissa (1972) 83 ITR 26 (SC)
Holding Penalty for a technical/bona fide default is not to be imposed; discretion governs.
Use Resists a mechanical 272AA levy where the default is bona fide.
Prepared for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Statutory text reproduced from the official Act; case-law holdings are the author’s summaries for professional use.
CHAPTER XXI — PENALTIES IMPOSABLE
Section 272AA — Penalty for Failure to Comply with the Provisions of Section 133B
Case Laws & Commentary — Income-tax Act, 1961 (as amended by the Finance Act, 2026) — bharattax.co Treatise
Status: Live but minor. A penalty up to Rs. 1,000 for failure to comply with section 133B (the power of an income-tax authority to collect certain information by visiting business premises and serving the prescribed form). Subject to reasonable cause under section 273B.
Finance Act, 2026: No amendment by the Finance Act, 2026.
Mechanism: Failure to comply with section 133B (furnishing the prescribed information on the authority’s visit) → penalty up to Rs. 1,000 → unless reasonable cause is shown under section 273B.
Litigation profile: Negligible direct litigation; the section is minor and the quantum small.
A. COMMENTARY
A small penalty for a survey-type information default
Section 133B empowers an income-tax authority to enter business/professional premises and collect specified information through the prescribed form. Section 272AA penalises non-compliance with a modest penalty of up to Rs. 1,000. The low ceiling reflects the limited, information-gathering nature of section 133B.
B. STATUTORY TEXT (verbatim)
Reproduced from the Income-tax Act, 1961 as amended up to the Finance Act, 2025; Finance Act, 2026 changes are noted above.
Penalty for failure to comply with the provisions of section 133B.
272AA. (1) If a person fails to comply with the provisions of section 133B, he shall, on an order passed by
the Joint Commissioner, Assistant Director or Deputy Director or the Assessing Officer, as the case may be,
pay, by way of penalty, a sum which may extend to one thousand rupees.
(2) No order under sub-section (1) shall be passed unless the person on whom the penalty is proposed to be
imposed is given an opportunity of being heard in the matter.
C. AUTHORITIES
No direct authority of note exists; the candour rule applies. The governing safeguard is section 273B reasonable cause.
1. Minor information-default penalty
Hindustan Steel Ltd v. State of Orissa (1972) 83 ITR 26 (SC)
Holding Penalty for a technical/bona fide default is not to be imposed; discretion governs.
Use Resists a mechanical 272AA levy where the default is bona fide.
Prepared for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Statutory text reproduced from the official Act; case-law holdings are the author’s summaries for professional use.