18. Penalty

(1) Where any person liable to pay tax under this Act, fails to comply with any of the provisions of this Act, the assessing authority may, after giving such person a reasonable opportunity of being heard, by order, in writing, impose on him, in addition to any tax payable, a sum by way of penalty not exceeding twice the amount of the tax due.

(2) If any person liable to pay tax under this Act, does not, without reasonable cause, pay the tax within the time he is required by or under the provisions of this Act, to pay it, the assessing authority may, after giving such person a reasonable opportunity of being heard, by order, in, writing, impose upon him by way of penalty, in addition to the amount of tax and penalty under sub-section (1), a sum equal to :-

(a) one and a half per cent of the amount of tax for each month for the first three months after the last date by which the person should have paid the tax; and

(b) two per cent of amount of tax per each month thereafter during the time the person continues to make default in the payment of the tax.