Interest on Income Tax Demand Starts After 30 Days of Valid Section 156 Notice

Karnal Coop. Sugar Mills Ltd. Vs CIT (Punjab and Haryana High Court) The petitioner, Karnal Cooperative Sugar Mills Ltd., filed a writ petition under Articles 226/227 of the Constitution of India seeking quashing of the order dated 07.12.1998 issued by the Joint Commissioner of Income Tax, Karnal, which demanded interest of ₹74,68,389 under Section 220(2) of the Income Tax Act, 1961. The petitioner, a cooperative society registered under the Haryana Cooperative Societies Act, 1984, was initially assessed under Section 143(3) of the Income Tax Act on 08.12.1994, resulting in a demand of ₹1,...