Sec. 156 notice of demand

Income Tax Wala: (Fin. Expert) (Chartered Accountants) (2015 Points)

18 April 2014  

 

Section 156 :

 

When in consequences of any order passed by AO / CIT, any tax , interest, penalty, fine or any other sum due in such case AO/CIT shall serve upon a notice to assessee in form no. 7 specifying the sum so payable. Other points as given below;

 

  • If in intimation u/s 143 (1) or 200A any sum of demand is there than is shall be deemed to issued notice of demand  u/ s 156

 

  • Service of notice of demand is mandatory to the person and to place before initiating recovery proceedings. Sri Mohan Wahi  v  CIT (2001) 248 ITR 799 (SC.)

 

section 220 (1)

 

  •  the amount specified in notice of demand issued u/s 156 shall have to paid within 30 days or service of notice.

 

  • AO in some cases with the prior approval of JCIT can ask the assessee to pay before 30 days.

 

NOTE:

  • As per section 210 AO can issue notice of demand u/s 156 to pay advance tax in form no. 28.

 

  • Period of 30 days shall not be applicable on notice to pay advance tax in form 28