220. When tax payable and when assessee deemed in default.
(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 days] [ Substituted by Act 4 of 1988, Section 85, for " thirty-five days" (w.e.f. 1.4.1989).] of the service of the notice at the place and to the person mentioned in the notice:Provided that, where the [Assessing Officer] [ Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).] has any reason to believe that it will be detrimental to revenue if the full period of [thirty days] [ Substituted by Act 4 of 1988, Section 85, for " thirty-five days" (w.e.f. 1.4.1989).] aforesaid is allowed, he may, with the previous approval of the [Joint Commissioner] [ Substituted by Act 21 of 1998, Section 3, for " Deputy Commissioner" (w.e.f. 1.10.1998).], 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 days] [ Substituted by Act 4 of 1988, Section 85, for " thirty-five days" (w.e.f. 1.4.1989).] 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 [[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.](2B)Notwithstanding anything contained in sub-section (2), where interest is charged under sub-section (1A) of section 201 on the amount of tax specified in the intimation issued under sub-section (1) of section 200A for any period, then, no interest shall be charged under sub-section (2) on the same amount for the same period.(2C)[ Notwithstanding anything contained in sub-section (2), where interest is charged under sub-section (7) of section 206C on the amount of tax specified in the intimation issued under sub-section (1) of section 206CB for any period, then, no interest shall be charged under sub-section (2) on the same amount for the same period.] [Inserted by Finance Act, 2015 (No. 20 of 2015), dated 14.5.2015.](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 [Assessing Officer] [ Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).] 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 defaults 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 246 [or section 246-A] [ Inserted by Act 10 of 2000, Section 62 (w.e.f. 1.6.2000).] the [Assessing Officer] [ Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).] 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 [Assessing Officer] [ Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).] 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.
