If the calculation of interest is by mistake, they can inform the same, demand, and collect a shortage of interest calculated up to the date of the previous date of demand. I am afraid that they can not serve the demand notice for interest after that date of earlier notice. However, it may be proper to give time for payment of such interest not collected by mistake and can prescribe a due date, and if such interest is not paid they may even demand up to date interest on such interest. However, you can ascertain the laid down rules and regulations from ITO through RTI or contact a local chartered accountant on the enforceability of such a claim.
Application dated.19th May 2020 seeking information under RTI Act
Before: CPIO, Income Tax Officer, Ward No.......................
RTI fee: Postal order for Rs.10/- fvg. Accounts Officer, Income Tax office payable at.......(Place)
1. Please provide me a copy of laid down law/process for recovery of less interest demanded earlier by mistake from assessee at a later date
2. Any such limitation period for demanding interest on such tax not communicated earlier due to mistake.
3. Please provide a copy of the citation if any that states the legality of making such demands after 3 years.