(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 [[one per cent.] [Substituted by Act 4 of 1988, Section 85, for " fifteen per cent. per annum from the day commencing after the end of the period mentioned in sub-Section (1)" (w.e.f. 1.4.1989).][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)] [Substituted by Act 4 of 1988, Section 85, for " fifteen per cent. per annum from the day commencing after the end of the period mentioned in sub-Section (1)" (w.e.f. 1.4.1989).] and ending with the day on which the amount is paid:[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 ] [ Inserted by Act 13 of 1963, Section 14 (w.r.e.f. 1.4.1962).][or an order of the Settlement Commission under sub-section (4) of section 245-D] [ Inserted by Act 4 of 1988, Section 85 (w.e.f. 1.4.1989).][, 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:] [ Inserted by Act 13 of 1963, Section 14 (w.r.e.f. 1.4.1962).][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 one and one-half per cent., for every month or part of a month.] [ Inserted by Act 4 of 1988, Section 85 (w.e.f. 1.4.1989).][(2-A) Notwithstanding anything contained in sub-section (2), ] [Inserted by Act 67 of 1984, Section 37 (w.e.f. 1.10.1984).][the [Chief Commissioner or Commissioner] [Substituted by Act 46 of 1986, Section 13, for " the Board may" (w.e.f. 1.4.1987).][may] [Substituted by Act 46 of 1986, Section 13, for " the Board may" (w.e.f. 1.4.1987).][Substituted by Act 67 of 1984, Section 36, for sub-Section (3) (w.e.f. 1.4.1985).] [reduce or waive the amount of ] [Inserted by Act 67 of 1984, Section 37 (w.e.f. 1.10.1984).] [interest paid or payable by an assessee] [ Substituted by Act 46 of 1986, Section 13, for " interest payable by the assessee" (w.r.e.f. 1.10.1984).][under the said sub-section if ] [Inserted by Act 67 of 1984, Section 37 (w.e.f. 1.10.1984).][he is satisfied] [ Substituted by Act 46 of 1986, Section 13, for " on the recommendation made by the Commissioner in his behalf" (w.r.e.f. 1.4.1987).] that-(i)[ payment of such amount ] [Inserted by Act 67 of 1984, Section 37 (w.e.f. 1.10.1984).][has caused or would cause genuine hardship] [ Substituted by Act 46 of 1986, Section 13, for " would cause genuine hardship" (w.r.e.f. 1.10.1984).][to the assessee;] [Inserted by Act 67 of 1984, Section 37 (w.e.f. 1.10.1984).](ii)[ default in the payment of the amount on which ] [Inserted by Act 67 of 1984, Section 37 (w.e.f. 1.10.1984).][interest has been paid or was payable] [ Substituted by Act 46 of 1986, Section 13, for " interest was payable" (w.r.e.f. 1.10.1984).][under the said sub-section was due to circumstances beyond the control of the assessee; and [Inserted by Act 67 of 1984, Section 37 (w.e.f. 1.10.1984).](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.]
