Settlement of arrears and issue of certificate.

(1) The assessing authority shall, on being satisfied about the payment of the amount determined under sub-section (1) of section 5, by an order, settle the arrears of tax, and penalty and issue a certificate in such form as may be prescribed, and thereupon, the applicant shall be discharged from his liability to make payment of the balance amount of arrears of penalty and interest. (2) The certificate under sub-section (1) shall be issued within fifteen days of payment of the entire amount determined under sub-section (1) of section 5 and separate certificate shall be issued in respect of each application. (3) The Assessing Authority, for reasons to be recorded in writing, may refuse to settle the arrears of tax, penalty and interest: Provided that no order under this sub-section shall be passed without giving the applicant a reasonable opportunity of showing cause against such refusal. (4) After a certificate under sub-section (1) is issued by the Assessing Authority, the Commissioner may, at any time within one year from the date of issue of the certificate, call for the record of such certificate and after noticing an error in such certificate, in so far as it is prejudicial to the interest of revenue, may modify the certificate after allowing the applicant a reasonable opportunity of showing cause.