Section 17: Penalty for default of payment of tax

(1) When an assessee is in default in making payment of 41tax within the time allowed in the notice of demand he shall pay, in addition to the amount of arrears of tax, an amount equal to five per cent of the said amount by way of penalty: Provided that where an appeal against the order of assessment is pending, the assessee shall not be liable to pay the penalty, if the arrears of tax are paid during the pendency of that appeal or within thirty days of the decision thereof. (2) Where any person fails to- (a) give the notice required to be sent to the assessing authority under 42section 15-E 15-F, within the period provided therefor: or (b) produce the record, document, account or particulars required to be produced before the assessing authority under 43section 22; the assessing authority may, in his discretion, impose on him a sum, not exceeding rupees fifty, by way of penalty, which si tall be recoverable from such person in addition to the tax, if any, due from him. (3) A notice of demand showing the amount of penalty payable under sub-section (1) or imposed under sub-section (2) shall be served on the assessee in the manner prescribed. 38 inserted by section 11raj. act no. 15 / 73 dated 1-4-73 39 substituted by 10(b) of raj act no. 15 of 1973 40 Amount of tax due inserted inplace amount of tax assessed vide LBT amendment act 14/95. 41 substituted by section 12(a) act no. 15 / 73 42 substituted by section 12(b)(I) of raj act no. 15 of 1973 published in raj. Gazette part-IV A Extra ordinary dated 1-4-1973 43 inserted by section 12(b)(ii) ibid.