Clause 62 - Amendment of section 220 - Finance (No. 2) Bill, 2014

Amendment of section 220 62. In section 220 of the Income-tax Act, with effect from the 1st day of October, 2014, (i) after sub-section (1), the following sub-section shall be inserted, namely: (1A) Where any notice of demand has been served upon an assessee and any appeal or other proceeding, as the case may be, is filed or initiated in respect of the amount specified in the said notice of demand, then, such demand shall be deemed to be valid till the disposal of the appeal by the last appellate authority or disposal of the proceedings, as the case may be, and any such notice of demand shall have the effect as specified in section 3 of the Taxation Laws (Continuation and Validation of Recovery Proceedings) Act, 1964. [ 11 of 1964]; (ii) in sub-section (2), (a) after the first proviso, the following proviso shall be inserted, namely: Provided further that where as a result of an order under sections specified in the first proviso, the amount on which interest was payable under this section had been reduced and subsequently as a result of an order under said sections or section 263, the amount on which interest was payable under this section is increased, the assessee shall be liable to pay interest under sub-section (2) from the day immediately following the end of the period mentioned in the first notice of demand, referred to in sub-section (1) and ending with the day on which the amount is paid: ; (b) in the second proviso, for the words Provided further , the words Provided also shall be substituted.