https://www.taxtmi.com/caselaws?id=208338 Interest under section 220(2) of the Income-tax Act remained chargeable on unpaid demand where the assessment was later restored in appeal. The proviso reduces interest only if the tax payable is finally reduced by an appellate or revisional order; a temporary reduction by the first appellate authority did not extinguish the original demand during the appeal period. The demand was treated as suspended, not cancelled, and was revived when the assessment was restored. The validating effect of section 3 of the Taxation Laws (Continuation and Validation of Recovery Proceedings) Act, 1964 supported continuation of recovery on the original demand without a fresh notice. Cases involving full payment followed by refund were distinguished. en-us Thu, 05 Jan 2012 00:00:00 +0530 Tue, 31 Jan 2012 18:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=208338 Interest under section 220(2) of the Income-tax Act remained chargeable on unpaid demand where the assessment was later restored in appeal. The proviso reduces interest only if the tax payable is finally reduced by an appellate or revisional order; a temporary reduction by the first appellate authority did not extinguish the original demand during the appeal period. The demand was treated as suspended, not cancelled, and was revived when the assessment was restored. The validating effect of section 3 of the Taxation Laws (Continuation and Validation of Recovery Proceedings) Act, 1964 supported continuation of recovery on the original demand without a fresh notice. Cases involving full payment followed by refund were distinguished. Case-Laws Income Tax Thu, 05 Jan 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=208338