https://www.taxtmi.com/caselaws?id=12080 Interest under section 220(2) arises only when a valid demand notice continues to subsist and the assessee defaults within the time allowed by that notice. Where the appellate effect order reduced the surtax liability to nil, the earlier demand notice ceased to operate, so later rectification and adjustment against refund did not create a live default or revive the extinguished notice. Section 3 of the Taxation Laws (Continuation and Validation of Recovery Proceedings) Act, 1964 applies only where a notice is restored by a higher forum after being quashed; it does not apply where the appellate order has attained finality and no fresh demand notice exists. en-us Tue, 17 Sep 2002 00:00:00 +0530 Tue, 16 Feb 2010 19:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12080 Interest under section 220(2) arises only when a valid demand notice continues to subsist and the assessee defaults within the time allowed by that notice. Where the appellate effect order reduced the surtax liability to nil, the earlier demand notice ceased to operate, so later rectification and adjustment against refund did not create a live default or revive the extinguished notice. Section 3 of the Taxation Laws (Continuation and Validation of Recovery Proceedings) Act, 1964 applies only where a notice is restored by a higher forum after being quashed; it does not apply where the appellate order has attained finality and no fresh demand notice exists. Case-Laws Income Tax Tue, 17 Sep 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12080