- If upon information which has come into his possession the prescribed authority is satisfied that reasonable grounds exist to believe that any payment for admission to a proprietor in respect of any period, has, for any reason, escaped assessment or any payment for admission of any such person or proprietor assessed under sub-section (4) of Section 6 has been under assessed the prescribed authority shall, after giving such a proprietor an opportunity of being heard, by an order in writing re-assess the tax payable by such proprietor within eight years of the expiry of such period:Provided that if the prescribed authority is satisfied that such proprietor has concealed, omitted or failed to disclose wilfully the particulars of such payment for admission or has furnished incorrect particulars and thereby has returned figures below the real amount, the prescribed authority, without prejudice to any action which is or may be taken under section 16, shall direct that the proprietor shall, in addition to any tax re-assessed, pay by way of penalty a sum not exceeding three times but not less than an amount equal to the amount of tax which is assessed on the amount of payment for admission escaped.
