https://www.taxtmi.com/caselaws?id=20968 Interest under section 220(2) of the Income-tax Act is attracted where an original demand was paid, a refund followed appellate relief, and the assessment was later restored. The Karnataka High Court reasoned that the Taxation Laws (Continuation and Validation of Recovery Proceedings) Act, 1964 keeps the original demand alive when the assessment is ultimately upheld, so a fresh demand notice is not necessary to sustain interest. It further noted that section 220(2) is compensatory, aimed at reimbursing the Revenue for being kept out of money lawfully due. On that basis, interest was held payable and the assessee's plea that it was not in default was rejected. en-us Thu, 26 Nov 1992 00:00:00 +0530 Wed, 18 Nov 2009 13:14:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20968 Interest under section 220(2) of the Income-tax Act is attracted where an original demand was paid, a refund followed appellate relief, and the assessment was later restored. The Karnataka High Court reasoned that the Taxation Laws (Continuation and Validation of Recovery Proceedings) Act, 1964 keeps the original demand alive when the assessment is ultimately upheld, so a fresh demand notice is not necessary to sustain interest. It further noted that section 220(2) is compensatory, aimed at reimbursing the Revenue for being kept out of money lawfully due. On that basis, interest was held payable and the assessee's plea that it was not in default was rejected. Case-Laws Income Tax Thu, 26 Nov 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20968