Penalty for failure to keep and maintain information and document, etc., in respect of certain transactions
Section 271AA of the Income-tax Act, 1961 deals with penalty for failure to keep and maintain information and document, etc., in respect of certain transactions. Without prejudice to the provisions of section 270A or section 271 or section 271BA, if any person in respect of an international transaction or specified domestic transaction,— (i) fails to keep and maintain any such information and document as required by sub-section (1) or sub-section (2) of sect The Act came into force on 01 Apr 1962. Repealed by the Income-tax Act, 2025 with effect from 1 April 2026, but conduct before that date is still charged, tried and appealed under it.
(1) Without prejudice to the provisions of section 270A or section 271 or section 271BA, if any person in respect of an international transaction or specified domestic transaction,—
(i) fails to keep and maintain any such information and document as required by sub-section (1) or sub-section (2) of section 92D;
(ii) fails to report such transaction which he is required to do so; or (iii) maintains or furnishes an incorrect information or document, the Assessing Officer or Commissioner (Appeals) may direct that such person shall pay, by way of penalty, a sum equal to two per cent of the value of each international transaction or specified domestic transaction entered into by such person.
(2) If any person fails to furnish the information and the document as required under sub-section (4) of section 92D, the prescribed income-tax authority referred to in the said sub-section may direct that such person shall pay, by way of penalty, a sum of five hundred thousand rupees.
Penalty where search has been initiated.
Section 271AA, The Income-tax Act, 1961 (Act 43 of 1961).
Now in the Income-tax Act
INCOME-TAX-ACT-2025 442 Penalty for failure to keep and maintain information and document, etc., in respect of certain transactions Official correspondence
Measured by comparing the text of the two provisions, not taken from an official correspondence table — there is no machine-readable one. See both texts side by side before relying on it.
Both regimes are live. The repealed enactment still governs what happened while it was in force. We never redirect one to the other.
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
- s. 92D Maintenance, keeping and furnishing of information and document by certain persons
- s. 270A Penalty for under-reporting and misreporting of income
- s. 271 Failure to furnish returns, comply with notices, concealment of income, etc
- s. 271BA Penalty for failure to furnish report under section 92E
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
-
GFL Limited v. Assessment Unit, Income Tax Department & Ors.
Court's Decision & Legal Precedent
DATE VERIFIED Final Order 22 Apr 2025: quashed s.271AA(1) penalty order and remanded to the same officer who heard the assessee by video conference to grant fresh hearing and pass a fresh penalty order — natural-justice / hearing integrity teaching on TP documentation penalty.
On this section: Primary teaching isolate on s.271AA penalty for TP documentation defaults.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 271AA
What have the courts held on Section 271AA of the Income-tax Act?
GFL Limited v. Assessment Unit, Income Tax Department & Ors. (22 Apr 2025) is the leading judgment on this section among those set out below: Primary teaching isolate on s.271AA penalty for TP documentation defaults.
How do I find court cases under Section 271AA of the Income-tax Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Income Tax Act 271AA, section 271AA Income Tax Act, section 271AA of the Income-tax Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with GFL Limited v. Assessment Unit, Income Tax Department & Ors. (22 Apr 2025).
What should I read with Section 271AA of the Income-tax Act, and has it changed?
Its own text turns on section 92D (Maintenance, keeping and furnishing of information and document by certain persons), section 270A (Penalty for under-reporting and misreporting of income), section 271 (Failure to furnish returns, comply with notices, concealment of income, etc), section 271BA (Penalty for failure to furnish report under section 92E), so none of them can safely be read on its own. 3 other provisions in this corpus refer back to it. For anything done on or after 1 April 2026 the provision to read is Income-tax Act, 2025, section 442 (Penalty for failure to keep and maintain information and document, etc., in respect of certain transactions), which replaced it; conduct before that date is still charged, tried and appealed under this section.
When did Section 271AA of the Income-tax Act come into force?
Section 271AA of the Income-tax Act, cited as Income Tax Act 271AA, came into force on 01 Apr 1962, having been enacted on 13 Sep 1961. It is no longer in force.
Other sections of this Act
- 10. Incomes not included in total income30885 words
- 2. Definitions11419 words
- 80HHF. Deduction in respect of profits and gains from export or transfer of film software, etc7148 words
- 80-IB. Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings5474 words
- 155. Other amendments5451 words
- 139. Return of income5400 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Recovered from the consolidated text published by the Income Tax Department, as amended by the Finance Act, 2026. India Code holds no record of this Act in any form. This page is not a substitute for legal advice.