Payment of tax on settlement.
278. (1) The assessee shall pay any sum payable in pursuance of an order under subsection (1) of section 277 within a period of thirty days of the receipt of a copy of the order.
(2) The Settlement Commission may, on an application by the assessee, extend the time for payment of additional amount of income-tax or wealth-tax or allow the payment by instalments if the assessee furnishes adequate security for such payment.
(3) The assessee shall, if the tax is not paid within the time specified in sub-section (1), be liable to pay simple interest at the rate of fifteen per cent. per annum on the amount remaining unpaid from the date of expiry of the period specified under sub-section (1) to the date on which the amount is paid irrespective of the fact that the Settlement Commission has extended the time for payment of such tax or has allowed payment thereof by instalment.
(4) The Assessing Officer may, in accordance with the provisions of Chapter XI,-
(a) recover the amount of any sum specified in the order under sub-section (1) of section 277, together with any interest payable thereon under sub-section (3); and
(b) impose and recover any penalty for default in making payment of such sum.
