19. Insertion of new section 125A in the principal enactment

The following new section is hereby inserted immdiately after section 125 of the principal enactment and shall have effect as section 125A of that enactment :—

125A. Where the Commissioner General is of the view, that any bank or financial institution which issues any debt security, or a company which issues corporate debt security not deducting tax in accordance with the provisions of section 5 122A or 122B, as the case may be, he shall after affording such bank, financial institution or any such company which issues corporate debt security an opportuity to show cause and where he is satisfied that there has been a contravention of the provisions of sections 122A or 122B, as the case may be,

“Penalty for tax avoidance.

impose on such bank or financial institution or the company which issues such debt security a penalty of a sum equivalent to five hundred percentum of the tax avoided by the contravention of the provisions of any such sections. ”.