(1) Where a person, who is required to deliver or causes to be delivered a statement prescribed in section 397(3)(b),—

(a) fails to do so within the time prescribed in the said section; or

(b) furnishes incorrect information in the said statement, the Assessing Officer may impose on such person, a penalty of a sum which shall not be less than Rs. 10000 but which may extend to Rs. 100000.

(2) No penalty shall be levied under sub-section (1)(a) for delay in filing or non-filing of statement referred therein, if the person proves that—

(a) tax deducted or collected along with the fee and interest, if any, was paid to the credit of the Central Government; and

(b) the said statement was also delivered or cause to be delivered before the expiry of one month from the time prescribed in section 397(3)(b).