Section 14   [ View Judgements ]

Penalty


(1) Where any person liable to pay tax under the Act fails to comply with any of the provisions of this Act or rules made thereunder, then the Assessing Sutjority may, after giving such person a reasonable opportunity of being heard, by order in writing impose on him in addition to any tax payable, a sum by way of penalty not exceeding twice the amount of tax.



[1] [ (2) If a person liable to pay tax under this Act does not pay the tax within the time he is required by or under the provisions of this Act to pay it, then he shall be liable to pay by way of simple interest, in addition to the amount of such tax and penalty, if any, under sub-section (1), a sum equal to two per cent. of the amount of such tax for each month or for part thereof, after the last date by which he should have paid such tax.]

FOOTNOTES:

1. 'Sub-section 2' was substituted by Mah. Act No. 19 of 1996 with effect from . 29-6-1996. 'Sub-section 2' was substituted read as under:- (2) If the person does not, without reasonable cause, pay the tax within the time he is required by or under the provisions of this Act or the rules made thereunder to pay it, the Assessing Authority may, after giving such person a reasonable opportunity of being heard, by order in writing, impose upon him by way of penalty, in addition to the amount of tax and penalty under sub-section (1), a sum equal to - (a) one and one half per cent of the amount of tax for each month for the first three months, after the last date by which the person should have paid that tax, and



(b) two per cent of the amount of tax for each month thereafter, during the time the person continues to make default in the payment of tax.



#LawyerServices #Section #Act #Law #Statute #IndianLaw #Kanoon