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After a section 146 notice, Meera Polymers fails to furnish the working information. Separately, Dinesh Chemicals furnishes a statement that it knows to be false. Which pair of consequences is correct under section 122?

Meera faces a fine that may extend to ten lakh rupees for failing to furnish the information. Dinesh faces imprisonment up to six months, or a fine, or both, for knowingly furnishing a false statement. These penalties are set by section 122(1) and 122(2).

  1. AMeera: fine up to ten lakh rupees; Dinesh: imprisonment up to six months, or fine, or bothCorrect
  2. BMeera: imprisonment up to six months; Dinesh: fine up to ten lakh rupees only
  3. CMeera: fine up to twenty thousand rupees; Dinesh: imprisonment up to six months only
  4. DMeera: no penalty if the Controller allowed no further time; Dinesh: fine only

Explanation

Section 122(1)(b) punishes refusal or failure to furnish information required under section 146 with a fine up to ten lakh rupees. Section 122(2) punishes a knowingly false statement with imprisonment up to six months, or fine, or both. Twenty thousand rupees was the earlier figure, replaced from 1-1-2005.

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