When prosecution under Section 276D shall be launched?
​​Prosecution under Section 276D shall be launched if a person commits any of the following defaults:

Willful failure to produce or causes to be produced such accounts and documents as required in a notice issued by the Assessing Officer under Section 142(1); or
Willful failure to get the accounts audited or inventory valued on the directions issued by the assessing officer for special audit or inventory valuation under Section 142(2A).​