Dismissing the appeal of the revenue the Court held that it is well settled law that mere grant of stay does not prevent running of interest. Therefore, interest under section 220(2) was chargeable upon assessee even during period of stay of demand granted by Assessing Officer as interest is mandatorily leviable under section 220(2). (AY. 2007-08)
CIT v. Canara Bank (2021) 277 Taxman 414 (Karn.)(HC)
S. 220 : Collection and recovery-Assessee deemed in default-Stay-Mere grant of stay of demand the assessee cannot be absolved from mandatory levy of interest. [S.220(2)]