https://www.taxtmi.com/caselaws?id=783974 Where the assessment order was accompanied by a demand notice specifying "zero" demand, the ITAT held that interest under s. 220(2) could not be levied merely because a tax demand was later created through rectification under s. 154. Since no amount was payable under s. 220(1) on the original notice, the assessee could not be treated as in default so as to attract s. 220(2). A demand arising from rectification becomes payable only after expiry of 30 days from service of a fresh notice under s. 156 specifying such demand; interest cannot run for any earlier period, and the assessee cannot be prejudiced by the AO's original computational mistake. The interest levy was deleted. en-us Tue, 23 Dec 2025 00:00:00 +0530 Fri, 26 Dec 2025 07:18:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=783974 Where the assessment order was accompanied by a demand notice specifying "zero" demand, the ITAT held that interest under s. 220(2) could not be levied merely because a tax demand was later created through rectification under s. 154. Since no amount was payable under s. 220(1) on the original notice, the assessee could not be treated as in default so as to attract s. 220(2). A demand arising from rectification becomes payable only after expiry of 30 days from service of a fresh notice under s. 156 specifying such demand; interest cannot run for any earlier period, and the assessee cannot be prejudiced by the AO's original computational mistake. The interest levy was deleted. Case-Laws Income Tax Tue, 23 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=783974