87[When tax, etc., payable
and when assessee deemed in default.
8831. (1) Any amount specified as payable in a
notice of demand under section 30 shall be paid within 89[thirty
days] of the service of the notice at the place and to the person mentioned in
the notice:
Provided that, where the 90[Assessing Officer] has any
reason to believe that it will be detrimental to revenue if the full period of 89[thirty
days] aforesaid is allowed, he may, with the previous approval of the 91[Joint
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 92[thirty
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 30 is not paid within the period limited
under sub-section (1), the assessee shall be liable to pay simple interest at 93[94[one]
per cent for every month or part of a month comprised in the period commencing from the day immediately
following the end of the period mentioned in sub-section (1) and ending with
the day on which the amount is paid:]
Provided that, where as
a result of an order under section 23, 95[or section 23A,] or
section 24, or section 25, or section 26, or section 27, or section 29, or
section 35 96[or
any order of the Wealth-tax Settlement Commission under sub-section (4) of
section 22D], 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:
97[Provided further
that in respect of any period commencing on or before the 31st day of March,
1989, and ending after that date, such interest shall, in respect of so much of
such period as falls after that date, be calculated at the rate of 98[one]
per cent for every month or part of a month.]
99[(2A) Notwithstanding
anything contained in sub-section (2), the 1[Chief Commissioner or
Commissioner] may reduce or waive the amount of interest 2[paid
or] payable by an assessee under the said sub-section if 3[he
is satisfied that]—
4[(i) payment of such amount has caused or would
cause genuine hardship to the assessee;
(ii) default in the payment of the amount on which interest has been
paid or was payable under the said sub-section was due to circumstances beyond
the control of the assessee; and]
(iii) the assessee has co-operated in any inquiry relating to the
assessment or any proceeding for the recovery of any amount due from him.]
(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 5[Assessing
Officer] may extend the time for payment or allow payment by instalments,
subject to such conditions as he may think fit to impose in the 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
instalments 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 23 6[or section 23A], the 7[Assessing 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 assets located in a country outside India, the laws of
which prohibit or restrict the remittance of money to India, the 7[Assessing Officer] shall not treat the
assessee as in default in respect of that part of the tax which is attributable
to those assets, and shall continue to treat the assessee as not in default in
respect of that part of the tax until the prohibition or restriction of
remittance is removed.]