2020 (3) TMI 551

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....remittance of taxes. 2. The petitioner had approached the ITSC for settlement of his case and an order had been passed on 22.05.2018 by the ITSC in terms of Section 245(D)(4). The petitioner had requested time to remit the tax and interest as computed by the Settlement Commission in six monthly installments and this prayer was accepted. Thus, the petitioner was directed to remit the tax and interest computed in six equal monthly installments starting from 01.06.2018 and ending on 30.11.2018. Admittedly, the scheme of payment has not been adhered to on account of, as stated by the petitioner, various difficulties in business and personal life to which I find no necessity to advert in detail. This resulted in a communication being issued b....

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....'[(6A) Where any tax payable in pursuance of an order under subsection (4) is not paid by the assessee within thirty-five days of the receipt of a copy of the order by him, then, whether or not the Settlement Commission has extended the time for payment of such tax or has allowed payment thereof by instalments, the assessee shall be liable to pay simple interest at (one and one fourth percent for every month or part of a month) on the amount remaining unpaid from the date of expiry of the period of thirty-five days aforesaid.]' 4. A computation of interest has been furnished by way of an additional counter dated 12.02.2020 to the following effect: Assessment year Demand due Interest u/s 245D(6A) till tax payment on date ....

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....and interest as finally determined, the Supreme Court concludes that the order of the ITSC had been complied with within the time granted by the ITSC originally. 7. The judgment of the Supreme Court is extracted below: Leave granted. The surviving grievance is only with regard to the immunity from prosecution under Section 245H (1A) of the Income Tax Act, 1961 (for short, 'the said Act'), which reads as follows: 245H (1A) An immunity granted to a person under sub-section (1) shall stand withdrawn if such person fails to pay any sum specified in the order of settlement passed under sub-section (4) of Section 245D within the time specified in such order or within such further time as may be allowed by the Settleme....