(1) The Assessing Officer or Commissioner (Appeals) may impose a penalty of 2% of the value of each international transaction or specified domestic
transaction entered into by a person, if in respect of such transaction he,—
(a) fails to keep and maintain any such information and document as required by section 171(1);
(b) fails to report such transaction as he is required to do so; or
(c) maintains or furnishes an incorrect information or document.
(2) The prescribed income-tax authority referred to in section 171(4) may impose a penalty of five lakh rupees on a person, if he fails to furnish the
information and document required under the said section.
