Offences and penalties

Offences and penalties.-If any person-

1. (a) fails to file the return under section 7 within the time allowed; or
2. (b) fails to furnish the said return; or
3. (c) knowingly furnishes incorrect return; he shall be liable to pay by way of penalty for such defaults-
   • (i) clause (a), a sum equal to 10% of the assessed tax; Provided that no penalty shall be imposed under clause (a) or clause (b) if the assessee satisfies the Assessing Authority that he was prevented by sufficient cause from furnishing the return or filing it within the time allowed: Provided further that where the tax payable is paid by the assessee, the same shall be recovered for the failure to file the return.