Limitation period for Recovery of amount under Section 79

[Pooja Agarwal]

Dear Experts,

Please guide if there is any limitation period for recovery of interest amount under section 79 as well. In our case the department proposes to recover the interest for FY 2017-18 u/s 79 of the act vide notice (DRC 01D) dt. 01.07.2025 

We do not agree to the interest demand, as the amount was available in Electronic Cash Ledger and only the return was filed after the due date (with late fee); there are various legal precedents in our support and the law has been amended as well, however neither the department is accepting our submissions nor the department not issuing SCN DRC 01A or DRC 01 (despite specific request), and has issued present DRC-01D.

Please guide

AI Summary

Interest on self-assessed tax: recovery may proceed via DRC 01D notice and is not barred without adjudication.
Interest on delayed payment of self-assessed tax is automatically payable and recoverable; issuance of a recovery notice in the prescribed format (DRC 01D) under the recovery procedure is a proper mode to initiate recovery, which may proceed after the statutory notice period. Disputed interest amounts require adjudication to determine liability and computation, and limitation applicable to raising demands under assessment provisions does not necessarily bar recovery of arrears including interest.