7. Assessment of employer or person.-

(1) If the assessing authority is satisfied that the return filed by any employer is correct and complete, it shall accept the return.

(2) (a) It the assessing authority is not satisfied that the return filed by any employer is correct and complete, it shall serve upon the employer a notice requiring him to attend in person or through an authorised representative on a date specified in the notice and to produce accounts and paper in support of the return.

(b) The assessing authority shall, on examination of accounts and papers, assess the amount of tax payable by the employer.

(c) It the employer fails to comply with the terms of the notice or if in the opinion of the assessing authority the accounts and papers are incorrect or incomplete or unrealisable, the said authority shall, after such enquiry as it deems fit or otherwise, assess the tax due to the best of its judgement.

(3) If an employer has failed to get himself registered or being registered, has failed to file any return or a person has failed to get himself enrolled under Section 5, the assessing authority shall, after giving the employer or the person, as the case may be, a reasonable opportunity of making representation and after holding such enquiry as it deems fit or otherwise, pass an order assessing the amount of tax due to the best of its judgement.

(3-A) When making an assessment under sub-section (3), the assessing authority may also direct the employer or the person, as the case may be, to pay in addition to the tax assessed a penalty equal to the amount of tax assessed under sub-section (3).

(4) The amount of tax so assessed or the amount of penalty so levied shall be paid within fifteen days of receipt of the notice of demand from the assessing authority.

(5) If within one month from the service of a notice of demand under sub-section (4), the employer or person satisfies the assessing authority that he was prevented by sufficient cause from getting himself registered or from filing the return under Section 6 or from getting himself enrolled under Section 5 as the case may be, the assessing authority shall cancel the assessment made under sub- section (3) and proceed to make a fresh assessment in accordance with the provisions of this section as the circumstances of the case may warrant.