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2014 (5) TMI 474 - AT - Income TaxComputation of interest leviable u/s 220(2) of the Act – Held that:- Following Girnar Investment Ltd. Vs. CIT [2012 (1) TMI 10 - DELHI HIGH COURT] = the assessee was liable to pay interest u/s 220(2) of the Act on the amount of tax due from him on the basis of the assessment order - The interest was payable for the entire period on the amount of tax as computed in the assessment order till the date on which it was actually paid - In computing the interest, no notice shall be taken of the fact that by virtue of the order of the Commissioner (Appeals) there was a reduction of the tax liability from the date of the order till the date on which the Tribunal restored the assessment order – thus, the assessee was required to pay interest u/s 220(2) as it had not initially satisfied the demand raised in 2003 - interest on refund is to be charged from the date of grant of refund - The assessee has given computation which may be considered by AO while computing the interest leviable u/s 220(2) – thus, the order of the CIT(A) is set aside – Decided in favour of Revenue.
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