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Interest charged on late payment of interest

This query is : Resolved 

26 June 2012 one of my client has received an order under section 201(1) / 201(1A) for FY 2008 2009 demading payment of Interest as given below.


Interest on late payment of TDS. Rs. 1030
Add: Interest on late payment of Rs. 465
Interest

Total amount payable Rs.1500/- (rounded off)

My doubt is under which provision(s) an interest on interest payable can be demanded?


27 June 2012 Interest on interest is a computer generated error. Legally it has no bas.

28 June 2012 I too have the same opinion. Thanks for supporting the same.


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