Section 16A. Penalty

(1) If any person liable to pay tax under this Act- (a) without reasonable cause, fails to furnish a return within the time allowed by section 7 or 13, or (b) without reasonable cause, fails to pay tax due in accordance with the return or any instalment thereof, within the time allowed therefor, under section 7 or sub-section (5) of section 15-A, or (c) has shown any amount of tax in the return, which falls short of the amount of tax assessed and the amount of tax paid with or without return falls short of the tax assessed by more than 30 thereof, or (d) makes false statement in the return under section 7 or 13, the assessing authority may direct that such person shall pay by way of penalty- (i) in case of clause (a), in addition to the tax payable by him, a sum not exceeding five rupees for every day during which the default continues, subject, however, to a maximum half the amount of tax due40; (ii) in case of clause (b), in addition to the amount payable by him a sum not exceeding half the amount of tax or instalment due; (iii) in case of clause (c), in addition to the tax payable by him a sum not exceeding half the amount of difference between the tax assessed and the tax paid; and (iv) in case of clause (d), in addition to the tax payable by him a sum not exceeding one thousand rupees. (2) A notice of demand showing the amount of penalty imposed under sub-section (1) shall be served on the assessee in the manner prescribed.