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TMI Blog2015 (7) TMI 1027X X X X Extracts X X X X X X X X Extracts X X X X ..... n of interest under s. 220(2) of the Act is contrary to intent and object of the said provisions of s. 220(2) of the Act. (d) Direct respondent No. 1 to recalculate the interest under s. 220(2) of the Act as per the provisions of s. 220(2) of the Act. The substance of the controversy in this case is however, with regard to the starting point or the commencement of the period from which the interest has to be calculated under sub-s. (2) of s. 220 of the IT Act, 1961 (hereinafter referred to as "the Act" for short). 2. These writ petitions, which pertain to the asst. yrs. 2006-07 to 2009- 10 touch upon the aforesaid controversy. It is an admitted fact that petitioner had not filed his returns for the aforesaid assessment years on time and that the self-assessment tax had not been paid in terms of the relevant provisions of the Act. Consequently, for the aforesaid years, the Officer raised a demand as per notice issued under s. 156 of the Act after making the assessment of the returns, which were filed belatedly i.e., pursuant to a search conducted in the premises of petitioner. The details of the demand for the aforesaid assessment years are tabulated as under : Asst. yrs. Self ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unsel on both sides and the material on record. Sec. 220 of the Act reads as under : "When tax payable and when assessee deemed in default. 220. (1) Any amount, otherwise than by way of advance tax, specified as payable in a notice of demand under s. 156 shall be paid within thirty days of the service of the notice at the place and to the person mentioned in the notice: Provided that, where the AO has any reason to believe that it will be detrimental to Revenue if the full period of thirty days aforesaid is allowed, he may, with the previous approval of the Jt. CIT, 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 aforesaid, as may be specified by him in the notice of demand. (2) If the amount specified in any notice of demand under s. 156 is not paid within the period limited under sub-s. (1), the assessee shall be liable to pay simple interest at 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-s. (1) and ending with the day on which the amount is paid : Provided that, where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 s. 246 or s. 246A the AO 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 AO 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." 8. In the instant case, Annexs. Dl to D4 are the assessment orders accompanied by notices of demand, which have been issued pursuant to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considering sub-s. (2) of s. 220 of the Act has stated as under : "A bare reading of this section clearly indicates that if the assessee does not pay the amount demanded under a notice issued under s. 156 of the Act within the time stipulated under sub-s. (1), the said assessee is liable to pay simple interest at one and one-half 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-s. (1) and ending with the day on which the amount is paid, and, therefore, the condition precedent under this section is that there should be a demand notice and there should be a default to pay the amount so demanded within the time stipulated in the said notice." 10. In the decision of the Division Bench of Jharkhand High Court, in the case of Misrilal Jain (supra), which arose under similar circumstances, though with regard to non-compliance of sub-s. (1) of s. 140A of the Act, it has been observed as under : "For creating interest liability, a separate provision has been made under the heading, Calculation (sic-Collection) and recovery' by s. 220. Sub-s. (2) of s. 220, which is sought to be a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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