Section 220(1)

Section 220(1) — the law in short

What the courts have decided on section 220(1), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.

• M/s. Vikrant Tyres Ltd v The First Income Tax Officer - no s.220(2) interest where the original demand was paid on time Supreme CourtHelps taxpayer
  I paid the original demand in full, got a refund when I won in appeal, and repaid on a fresh demand after losing in reference. The department now wants s.220(2) interest for the period in between. Must I pay it?
  No. The Supreme Court held that the condition precedent for s.220(2) is a notice of demand under s.156 AND a default in paying the amount demanded within the time allowed. Where the assessee satisfied the original demand promptly and later satisfied the fresh demand promptly, there was no default at any point, and s.220(2) cannot be invoked for the period during which the refunded money was in his hands.

Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.