law: Expenditure-Tax Act, 1987 
  18. Penalty for failure to comply with notice 
  If the 25[Assessing] Officer in the
  
  course of any proceedings under this Act is satisfied that any person has
  
  failed to comply with a notice under sub-section (1) of section 9, he may
  
  direct that such person shall pay by way of penalty, in addition to any tax
  
  payable by him, a sum which shall not be less than ten per cent but which shall
  
  not exceed fifty per cent of the amount of the tax, if any, which would have
  
  been avoided if the chargeable expenditure returned by such person had been
  
  accepted as the correct chargeable expenditure.