Section 459 — Penalty for failure to furnish report or for furnishing inaccurate report under section 511

(1) If any reporting entity referred to in section 511, required to furnish the
report referred to in sub-section (2) of the said section, for a reporting
accounting year, fails to do so, the prescribed authority under that section may
impose on such entity, a penalty of—
( a) ` 5000 for every day for which the failure continues, if the period of
failure does not exceed one month;
( b) ` 15000 for every day for which the failure continues beyond the period
of one month.
(2) If any reporting entity referred to in section 511 fails to produce the information
and documents within the period allowed under sub-section (7) of the said section,
the prescribed authority under that section may impose on such entity, a penalty
of ` 5000 for every day during which the failure continues, beginning from the day
immediately following the day on which the period for furnishing the information
and document expires.
(3) If the failure referred to in sub-section (1) or (2) continues after an order im -
posing a penalty under the said sub-section, has been served on the entity, then,
irrespective of the provisions of the said sub-sections, the prescribed authority
may impose penalty of fifty thousand rupees for every day for which such failure
continues beginning from the date of service of such order.
(4) If a reporting entity referred to in section 511 provides inaccurate information
in the report furnished under sub-section (2) of the said section, the prescribed
authority under that section may impose on such entity, a penalty of ` 500000, if—
( a) the entity has knowledge of the inaccuracy at the time of furnishing the
report but fails to inform the prescribed authority; or
( b) the entity discovers the inaccuracy after the report is furnished and fails
to inform the prescribed authority and furnish correct report within
fifteen days of such discovery; or
( c) the entity furnishes inaccurate information or document in response to
the notice issued under section 511(7).