Indian Income-Tax Act, 1922

CHAPTER VI

RECOVERY OF TAX AND PENALTIES

45. Tax when payable.—Any amount specified as payable in a notice of demand [under sub-section [(3)] of section 23A or] under section 29 or an order under section 31 * * or section 33, shall be paid within the time, at the place and to the person mentioned in the notice or order, or if a time is not so mentioned, then on or before the first day of the second month following the date of the service of the notice or order, and any assessee failing so to pay shall be deemed to be in default, provided that, when an assessee has presented an appeal under section 30 * *, the Income-tax Officer may in his discretion treat the assessee as not being in default as long as such appeal is undisposed of:

[Provided further that where an assessee has been assessed in respect of income arising outside [the taxable territories] in a country the laws of which prohibit or restrict the remittance of money to [the taxable territories], 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 [the taxable territories], 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.

Explanation.—For the purposes of this section income shall be deemed to have been brought into [the taxable territories] if it has been utilized or could have been utilized for the purposes of any expenditure actually incurred by the assessee without [the taxable territories] or if the income whether capitalized or not has been brought into [the taxable territories] in any form.]