Penalty for default of payment of tax.

16. (1) When an assessee is in default in making payment of any instalment of the tax payable, he shall pay, in addition to the amount of arrears of tax, an amount equal to ten 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 Property Tax Commissioner under section 13, within the period provided therefor ; or (b) produce the record, document, account or particulars required to be produced before the Property Tax Commissioner under section 22 ; the Property Tax Commissioner may in his discretion, impose on him a sum, not exceeding rupees fifty, by way of penalty, which shall be recoverable from such person in addition to the tax due from him, if any.

(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.