https://www.taxtmi.com/caselaws?id=15702 Interest under section 220(2) arises when the amount in a notice of demand under section 156 is not paid within time, and it runs on the total unpaid quantified demand. The provision treats tax, interest and penalty as part of the recoverable fiscal liability once demand is quantified, and operates as a compensatory measure in the statutory recovery machinery. It is an incidental and ancillary device to enforce timely payment of dues and is not arbitrary or confiscatory merely because the demand includes interest or penalty components. The constitutional challenge under articles 14 and 19(1)(g) therefore fails. en-us Tue, 03 Aug 1999 00:00:00 +0530 Thu, 27 Aug 2009 11:50:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15702 Interest under section 220(2) arises when the amount in a notice of demand under section 156 is not paid within time, and it runs on the total unpaid quantified demand. The provision treats tax, interest and penalty as part of the recoverable fiscal liability once demand is quantified, and operates as a compensatory measure in the statutory recovery machinery. It is an incidental and ancillary device to enforce timely payment of dues and is not arbitrary or confiscatory merely because the demand includes interest or penalty components. The constitutional challenge under articles 14 and 19(1)(g) therefore fails. Case-Laws Income Tax Tue, 03 Aug 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15702