11. Security Deposit
(1) The assessing authority may, for good and sufficient reasons, demand from any assessee liable to pay tax under this Act, security for the timely discharge of his outstanding and anticipated tax liability, and on such demand, such assessee shall furnish the same within one month from the date of receipt of an order demanding security from the aforesaid authority.
(2) The amount of security demanded under sub-section (1) for anticipated tax liability shall not, unless the assessee is in default of filing of return or payment of tax due according to the returns filed by him, exceed an amount equivalent to the tax anticipated to be payable by the assessee for a year:
Provided that the assessing authority shall have power to demand at any time additional security if it has reasons to believe that the security obtained was not sufficient after affording the assessee an opportunity of being heard.
(3) The security furnished under sub-section (2), shall be maintained in full until it is dispensed with by the assessing authority on being satisfied that the reason for its demand no longer exists.
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