7A. [ Assessment of escaped tax. [Sectoion 7A sub-section 1 and 2 Inserted by Act 10 of 1986 w.e.f. 31.3.1986]
(1)Where for any reason the whole or any part of the [charges for lodging, charges for luxuries provided in a hotel for residents or others, charges for luxuries provided in a marriage hall or turnover of stock of luxuries] has escaped assessment to tax or has been assessed at a lower rate than the rate at which it is assessable, the Luxury Tax Officer may, at any time within a period of five years from the expiry of the [year] [Substituted by Act 7 of 1997 w.e.f. 1.4.1997] to which the tax relates, proceed to assess to the best of his judgment the tax payable on such charges after issuing a notice to the [proprietor or stockist] [Substituted by Act 7 of 1997 w.e.f. 1.4.1997] and after making such enquiry as he considers necessary.(2)In making an assessment under sub-section (1) the Luxury Tax Officer may, if he is satisfied that the tax escaped from assessment is due to willful non-disclosure of the charges for lodging by the proprietor [or turnover of stock of luxuries by the stockist] [Substituted by Act 7 of 1997 w.e.f. 1.4.1997], after giving a reasonable opportunity of showing cause, direct the proprietor [or the stockist, as the case may be] [Substituted by Act 7 of 1997 w.e.f. 1.4.1997] to pay, in addition to the tax assessed under sub-section (1), a penalty not exceeding one and a half times the tax so assessed.]
