Assessment of escaped tax

Tax200742 sections3 chapters

Chapter III Chapter III

Statutory text

(1) Where for any reason the whole or any part of the charges for luxury provided in a hotel or charges for luxury provided in a banquet hall has escaped assessment to tax or has been assessed at a rate lower than the rate at which it is assessable, the assessing authority may, within a period of three years from the expiry of the period to which the tax relates, proceed to assess or reassess to the best of its judgment the tax due from the proprietor.
(2) In making an assessment under sub-section (1), the assessing authority may, if it is satisfied that the tax escaped from assessment is due to willful non-disclosure of the charges for luxury by the proprietor, after giving a reasonable opportunity of showing cause, direct the proprietor to pay, in addition to the tax assessed under sub-section (1), a penalty twice the tax so assessed.

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