31. When tax, etc., payable and when assessee deemed in default
1[31. When tax, etc., payable and when assessee deemed in default .—(1) Any amount specifed as payable in a notice of demand under section 30 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 2[thirty days] aforesaid is allowed, he may, with the previous approval of the 4[Deputy 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 2[thirty days] aforesaid, as may be specified by him in the notice of demand.
(2) If the amount specifed 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 5[ 6[ 7[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 8[or section 23A], or section 24, or section 25, or section 26, or section 27, or section 29, or section 35 9[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:
10[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 11[ 12[ 13[one per cent.]] for every month or part of a month.]
14[(2A) Notwithstanding anything contained in sub-section (2), 15[the [ 16 Chief Commissioner or Commissioner] may] reduce or waive the amount of 17[interest paid or payable by an assessee] under the said sub-section if 18[he is satisfied that]—
19[(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 thas 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), the20[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 limit 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, that 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 21[or section 23A], the20[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 lndia, the laws of which prohibit or restrict the remittance of money to India, the 20[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.]
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1. Subs. by Act 46 of 1964, sec. 28, for section 31 (w.e.f. 1-4-1965).
2. Subs. by Act 4 of 1988, sec. 148(a), for “thirty-five days” (w.e.f. 1-4-1989).
3. Subs. by Act 4 of 1988, sec. 127, for “Wealth-tax Officer” (w.e.f. 1-4-1988).
4. Subs. by Act 4 of 1988, sec. l27, for “Inspecting Assistant Commissioner” (w.e.f. l-4-1988).
5. Subs. by Act 4 of 1988, sec. 148(b)(i), for certain words (w.e.f. 1-4-1989).
6. Subs. by Act 4 of 2001, sec. 99, for “one and one-half per cent.” (w.e.f. 1-6-2001).
7. Subs. by Act 54 of 2003, sec. 20(a), for “one and one-fourth per cent.” (w.r.e.f. 8-9-2003).
8. Ins. by Act 10 of 2000, sec. 74(a) (w.e.f. 1-6-2000).
9. Ins. by Act 4 of 1988, sec. 148(b)(ii) (w.e.f. 1-4-1989).
10. lns. by Act 4 of 1988, sec. 148(b)(iii) (w.e.f. 1-4-1989).
11. Subs. by Act 14 of 2001, sec. 99(i), for “one and one-half per cent.” (w.e.f. 1-6-2001).
12. Subs. by Act 14 of 2001, sec. 99(ii), for “one and one-half per cent.” (w.e.f. 1-6-2001).
13. Subs. by Act 54 of 2003, sec. 20(b), for “one and one-fourth per cent.” (w.r.e.f. 8-9-2003).
14. Ins. by Act 67 of 1984, sec. 66(b) (w.e.f. 1-10-1984).
15. Subs. by Act 4 of 1988, sec. 88(a)(i), for “the Board may” (w.r.e.f. 1-4-1987).
16. Subs. by Act 4 of 1988, sec. 127, for “Commissioner” (w.e.f. 1-4-1988).
17. Subs. by Act 11 of 1987, sec. 88(a)(ii), for “interest payable by an assessee” (w.r.e.f. 1-10-1984).
18. Subs. by Act 11 of 1987, sec. 88(a)(iii), for certain words (w.r.e.f. 1-4-1987).
19. Subs. by Act 11 of 1987, sec. 88(b), for clauses (i) and (ii) (w.r.e.f. 1-10-1984).
20. Subs. by Act 4 of 1988, sec. 127, for “Wealth-tax Officer” (w.e.f. 1-4-1988).
21. Ins. by
Act 10 of 2000, sec. 74(b) (w.e.f. 1-6-2000).
