(1) If a person fails to comply with the provisions of section 397, the Assessing Officer may impose a penalty of Rs. 10000 on him.

(2) If a person, required to quote his Tax Deduction and Collection Account Number in challans, certificates, statements or other documents referred to in section 397(1)(b), quotes a number which is false, knowing or believing it to be false or not true, the Assessing Officer may impose a penalty of Rs. 10000 on him.