Section 220(2) Does Not Allow Department to Levy Interest on Already Paid Tax

Catherine Thomas Vs Principal Chief Commissioner of Income Tax (Kerala High Court) Introduction: In a recent judgment by the Kerala High Court, the case of Catherine Thomas vs. Principal Chief Commissioner of Income Tax addressed the issue of whether Section 220(2) of the Income Tax Act has retrospective effect and the liability to pay interest on crystallized tax. The court’s decision clarifies the applicability of this section and its impact on taxpayers. Detailed Analysis: The petitioner in this case challenged a demand notice (P12) from the Income Tax Department, which directed them ...