Penalty for belated return filing is not covered by Section 17A(3) where the provision targets non-payment of tax.

Section 17A(3) of the Kerala Agricultural Income-tax Act is confined to failure to pay tax or part of tax in accordance with sub-section (1), and its plain language does not extend to penalising mere late filing of a return. The court accepted that the provision authorises recovery of a sum linked to continued non-payment after due opportunity of hearing, but not a penalty solely because the return was filed after the due date. Penalty under Section 17A(3) for belated filing was therefore held to be impermissible, and the assessee's challenge succeeded.

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Issues: Whether penalty under section 17A(3) of the Kerala Agricultural Income-tax Act is leviable for belated filing of the return.

Analysis: Section 17A(3) contemplates penalty where a person fails to pay the tax or any part thereof in accordance with sub-section (1). On its plain terms, the provision is directed against non-payment of admitted tax or part thereof and not against mere late filing of the return.

Conclusion: Penalty under section 17A(3) was not attracted for the belated filing of the return, and the penalty orders were rightly quashed.

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