When tax payable and when assessee deemed in default
D.—Collection and recovery
When tax payable and when assessee deemed in default.
220. (1) Any amount otherwise than by way of advance-tax, specified as payable in a notice of demand under section 156 shall be paid within thirty-five days of the service of the notice at the place and to the person mentioned in the notice :
Provided that, where the Income-tax Officer has any reason to believe that it will be detrimental to revenue if the full period of thirty-five days aforesaid is allowed, he may with the previous approval of the Inspecting Assistant Commissioner, direct that the sum specified in the notice of demand shall be paid within such period being a period less than the period of thirty-five days aforesaid as may be specified by him in the notice of demand.
(2) If the amount specified in any notice of demand under Section 156 is not paid within the period limited under sub-section (1), the assessee shall be liable to pay simple interest at †[nine per cent] per annum from the day commencing after the end of the period mentioned in sub-section (1):
1[Provided that, where as a result of an order under section 154, or section 155, or section 250, or section 254, or section 260, or section 262, or section 264 the amount on which interest was payable under this section had been reduced, the interest shall be reduced accordingly and the excess interest paid, if any shall be refunded.]
(3) Without prejudice to the provisions contained in sub-section (2) on an application made by the assessee before the expiry of the due date under sub-section (1), the Income-tax Officer may extend the time for payment or allow payment by instalments, subject to such conditions as he may think fit to impose in circumstances of the case.
(4) If, the amount is not paid within the time limited under sub section, (1) or extended under sub-section (3), as the case may be, at the place and to the person mentioned in the said notice the assessee shall be deemed to be in default.
(5) If in a case where payment by instalments is allowed under sub-section (3), the assessee commits default in paying any one of the instalment within the time fixed under that sub-section, the assessee shall be deemed to be in default as to the whole of the amount then outstanding, and the other instalment or instalments shall be deemed to have been due on the same date as the instalment actually in default.
(6) Where an assessee has presented an appeal under section 246 the Income-tax Officer may, in his discretion, and subject to such conditions as he may think fit to impose in the circumstances of the case, treat the assessee as not being in default in respect of the amount in dispute in the appeal, even though the time for payment has expired, as long as such appeal remains undisposed of.
(7) Where an assessee has been assessed in respect of income arising outside India in. a country the laws of which prohibit or restrict the remittance of money to India the Income-tax Officer shall not treat the assessee as in default in respect of that part of the tax which is due in respect of that amount of his income which, by reason of such prohibition or restriction, cannot be brought into India, and shall continue to treat the assessee as not in default in respect of such part of the tax until the prohibition or restriction is removed.
Explanation.—For the purposes of this section, income shall be deemed to have been brought into India if it has been utilised or could have been utilised for the purposes of any expenditure actually incurred by the assessee outside India or if the income, whether capitalised or not has been brought into India in any form.
† Subs. by Act No. 27 of 1967 w.e.f. 1-10-1967.
1. Ins. by s. 14 of the Finance Act, 1963 w.e.f. 1-4-62.
[As amended by Finance Act, 1970]