Report No. 12
D-Collection and Recovery.
229. When tax payable and when assessee deemed in default.-
(1) Any amount specified as payable in a notice of demand under section 165 [29] shall be paid (within the time, at the place and to the person mentioned in the notice , or if a time is not so mentioned, then on or before the expiry of a period of forty-five days from the date of the service of the notice.
[Section 45, main para., part]
(2) On an application made by the assessee before the expiry of the due date under sub-section (1), the Income-tax 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.
(3) If the amount is not paid within the time limited under sub-section (1) or extended under sub-section (2), 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.
[Section 45, main para., part]
(4) If, in a case where payment by instalments is allowed under sub-section (2), 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.
(5) Where an assessee has presented an appeal under section 254 [30] , the Income-tax 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.
[Section 45, 1st proviso]
(6) 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 Income-tax Officer 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.
[Section 45, 2nd proviso]
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 without India or if the income, whether capitalised or not, has been brought into India in any form.
[Section 45, Explanation]
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