https://www.taxtmi.com/caselaws?id=14108 Interest under section 220(2) of the Income-tax Act was held not chargeable where the assessee had already fully satisfied the original demand under section 156 and no subsisting default remained. The later refund of the amount after appellate relief did not revive a continuing liability to interest, because the statute fastens interest only on non-payment within the prescribed time. Section 3 of the Taxation Laws (Continuation and Validation of Recovery Proceedings) Act, 1964 was held incapable of creating a fresh substantive interest liability or enlarging a demand that had already been discharged. The interpretation of the taxing provision was confined to its clear language, resulting in the issue being decided in favour of the assessee. en-us Thu, 26 Apr 2001 00:00:00 +0530 Mon, 13 Jul 2009 16:53:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=14108 Interest under section 220(2) of the Income-tax Act was held not chargeable where the assessee had already fully satisfied the original demand under section 156 and no subsisting default remained. The later refund of the amount after appellate relief did not revive a continuing liability to interest, because the statute fastens interest only on non-payment within the prescribed time. Section 3 of the Taxation Laws (Continuation and Validation of Recovery Proceedings) Act, 1964 was held incapable of creating a fresh substantive interest liability or enlarging a demand that had already been discharged. The interpretation of the taxing provision was confined to its clear language, resulting in the issue being decided in favour of the assessee. Case-Laws Income Tax Thu, 26 Apr 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=14108