Recovery of tax and penalties :
Section – 32. (1) Any amount specified as payable in a notice of demand under section 31 shall be paid within 87[thirty days] of the service of the notice at the place and to the person mentioned in the notice:
Provided that, where the 88 [Assessing Officer] has any reason to believe that it will be detrimental to revenue if the full period of 89[thirty days] aforesaid is allowed, he may, with the previous approval of the 90[ 90a [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 90b[thirty days] aforesaid, as may be specified by him in the notice of demand.
91 (2) If the amount specified in any notice of demand under section 31 is not paid within the period limited under sub-section (1), the assessee shall be liable to pay simple interest at 92[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-section (1) and ending with the day on which the amount is paid]:
93 [Provided that where as a result of an order under section 22, or section 23, or section 24, or section 25, or section 26, or section 28, or section 34, 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:]
94 [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.]
(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 95[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 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 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.
(6) Where the assessee has presented an appeal under section 22, the 96[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.]