(2) Subject to the provisions of rule 119, if the amount of tax, penalty or other sum in respect of which such interest is payable is paid up before the end of any financial year, the Assessing Officer shall calculate the interest payable under sub-section (2) of section 220 up to the date on which the payment of such tax, penalty or other sum is completed and a notice of demand under section 156 shall be issued accordingly.
Extra Notes for Readers:
- Rule 118 was introduced by the Income Tax (11th Amendment) Rules, 1989, w.e.f. 30th Nov. 1989
Reference/Source: Check at Income Tax site for latest version of the Rules - link