TMI Blog2010 (6) TMI 768X X X X Extracts X X X X X X X X Extracts X X X X ..... peal is filed against the order of the Tribunal holding that appellant is liable to pay interest under Section 220(2) of the Income Tax Act for the entire period of default commencing from the date of service of original demand till payment after appeal was disposed of by the Tribunal. 2.We have heard counsel for the appellant assessee and standing counsel for the respondent. 3.The asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and were restored. Consequently, revised order was issued vide Ext.P7 by which the department has charged interest under Section 220 (2) of the I.T.Act for the entire period of default on the sustained demand, that is, from the date of the original demand till date of re- computation of liability. Assessee did not succeed in the two level appeals against levy of interest before the C.I.T.(Appeals) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the entire balance amount due from original date of default till date of making payment. 5.We have already noticed that, in the first place, both the decisions relied on are cases where full tax amount had been paid in terms of the demand by the assessee and later, after first appellate order, the amounts have been refunded. However, in this case, out of the original demand of over ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions on interest, which are covered only under Section 220(2) of the Act. Default is a necessary pre- condition for demand of interest under Section 220(2) and there can be no dispute that, after grant of refund, assessee cannot be held to be a defaulter, no matter, without issuing a fresh notice of demand, assessee could be called upon to pay the balance demand arising after Tribunal's ..... X X X X Extracts X X X X X X X X Extracts X X X X
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