Assessment of unregistered proprietor liable to pay tax

If upon information, the assessing authority is satisfied that any proprietor of a hotel or banquet hall is liable to pay tax in respect of any period but has failed to apply for registration, the assessing authority shall, within three years after the expiry of such period, after giving such proprietor a reasonable opportunity of being heard, proceed to assess, to the best of its judgment, the amount of tax, if any, due from the proprietor in respect of such period and all subsequent periods and in case where such proprietor has willfully failed to apply for registration, the assessing authority may direct that the proprietor shall pay by way of penalty, in addition to the amount of tax so assessed, a sum equal to twice the amount of tax so assessed. Explanation.– For the purposes of this section a proprietor shall be deemed to have failed to apply for registration, if he makes an incomplete application for registration or, having made an application for registration, fails to comply with any direction given to him by the assessing authority within the time specified including direction to furnish security under sub-section

1. (3) of section 11.