Section 16(1) in The M.P. Nagariya Sthawar Sampatti Kar Adhiniyam, 1964
(1)When an assessee is in default in making payment of any instalment of the tax payable, he shall pay, in addition to the amount of arrears of tax, an amount equal to ten per cent of the said amount by way of penalty :Provided that where an appeal against the order of assessment is pending, the assessee shall not be liable to pay the penalty, if the arrears of tax are paid during the pendency of that appeal or within thirty days of the decision thereof.
