Interest levy under section 220(2) limited when original assessment is finally cancelled; fresh demand governs interest timing. Where an assessment order is finally cancelled under section 146 or set aside by an appellate/revisional authority and that cancellation becomes final, no interest under section 220(2) may be charged from the original demand; if the assessment is reframed, interest can only be charged after 35 days from service of the demand notice pursuant to the fresh assessment. If an original order is restored on further appeal, interest under section 220(2) is computed from the original demand's due date with reference to the tax finally determined.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Interest levy under section 220(2) limited when original assessment is finally cancelled; fresh demand governs interest timing.
Where an assessment order is finally cancelled under section 146 or set aside by an appellate/revisional authority and that cancellation becomes final, no interest under section 220(2) may be charged from the original demand; if the assessment is reframed, interest can only be charged after 35 days from service of the demand notice pursuant to the fresh assessment. If an original order is restored on further appeal, interest under section 220(2) is computed from the original demand's due date with reference to the tax finally determined.
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