Section 220 When tax payable and when assessee deemed in default.

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The Tax Publishers [1]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 [2][thirty] days of the service of the notice at the place and to the person mentioned in the notice : Provided that, where the [3][Assessing] Officer has any reason to believe that it will be detrimental to revenue if the full period of [4][thirty] days aforesaid is allowed, he may, with the previous approval of the [5][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 [6][thirty] days aforesaid, as may be specified by him in the notice of demand. [7][(1A) Where any notice of demand has been served upon an assessee and any appeal or other proceeding, as the case may be, is filed or initiated in respect of the amount specified in the said notice of demand, then, such demand shall be deemed to be valid till the disposal of the appeal by the last appellate authority or disposal of the proceedings, as the case may be, and any such notice of demand shall have the effect as specified in Section 3 of the Taxation Laws (Continuation and Validation of Recovery Proceedings) Act, 1964 (11 of 1964).] [8](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 [9][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 :] [10][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, [11][or an order of the Settlement Commission under sub-section (4) of Section 245D], 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 :] SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

[1]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 [2][thirty] days of the service of the notice at the place and to the person mentioned in the notice :

Provided that, where the [3][Assessing] Officer has any reason to believe that it will be detrimental to revenue if the full period of [4][thirty] days aforesaid is allowed, he may, with the previous approval of the [5][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 [6][thirty] days aforesaid, as may be specified by him in the notice of demand.

[7][(1A) Where any notice of demand has been served upon an assessee and any appeal or other proceeding, as the case may be, is filed or initiated in respect of the amount specified in the said notice of demand, then, such demand shall be deemed to be valid till the disposal of the appeal by the last appellate authority or disposal of the proceedings, as the case may be, and any such notice of demand shall have the effect as specified in Section 3 of the Taxation Laws (Continuation and Validation of Recovery Proceedings) Act, 1964 (11 of 1964).]

[8](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 [9][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 :]

[10][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, [11][or an order of the Settlement Commission under sub-section (4) of Section 245D], 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 :]