Can 220(2) be invoked to section 201

Dear All

Can You provide Your views on this please:

There was a delay of one/two days in deposit of TDS in 4th qtr of FY 0708. In response to the notice received on 17 Jan , 12 from TDS ward we paid the interest from date of deduction till date of deposit on 20 Jan, 12. While appearing for Hearing, the AO is demanding interest till date not under section 201 but under section 220(2). My question is can 220(2) be invoked in this case.

We have not received any notice of demand under section 156 which is referred to in section 220(2).

Regards,

Dipjyoti