https://www.taxtmi.com/caselaws?id=26704 Interest under section 220(2) of the Income-tax Act is attracted only when the amount specified in a demand notice under section 156 is not paid within the permitted time. Where the assessee had already complied with the original demand, later restoration of the assessment by the Tribunal and revival of the demand under validating legislation did not create a prior default. The statutory scheme did not permit levy of interest for a period when the demand had already been satisfied, and departmental circulars could not override the plain text of the Act. The levy of interest from the date of refund was therefore unsustainable. en-us Thu, 05 Jul 1984 00:00:00 +0530 Sat, 06 Feb 2010 18:39:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26704 Interest under section 220(2) of the Income-tax Act is attracted only when the amount specified in a demand notice under section 156 is not paid within the permitted time. Where the assessee had already complied with the original demand, later restoration of the assessment by the Tribunal and revival of the demand under validating legislation did not create a prior default. The statutory scheme did not permit levy of interest for a period when the demand had already been satisfied, and departmental circulars could not override the plain text of the Act. The levy of interest from the date of refund was therefore unsustainable. Case-Laws Income Tax Thu, 05 Jul 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26704