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2015 (9) TMI 500 - ALLAHABAD HIGH COURTRectification of mistake - interest under Section 220(2) of the Act was charged from the date of the original Assessment Order dated 26.3.1992.- Held that:- In the instant case, the original demand pursuant to the first Assessment Order dated 26.3.1992 was duly satisfied and the amount was refunded pursuant to the first rectification order passed under Section 154 on 15.9.1994. In similar circumstances, the Supreme Court in the case of Vikrant Tyres Limited ( 2001 (2) TMI 129 - SUPREME Court ) the Supreme Court held that where the original demand was satisfied and the amount was paid by the assessee interest could not be payable from the original date of demand if levied subsequently. The Supreme Court found that the condition precedent for invoking the said Section was only if there was a default in payment of the amount demanded under a notice by the revenue within the stipulated period therein and if such a demand was not satisfied then Section 220(2) could be invoked. In the light of the aforesaid decision, we find that the original demand pursuant to the Assessment Order dated 26.3.1992 was paid by the assessee and the demand was satisfied. Subsequently when a fresh order was passed by the Assessing Officer on 1.12.1995 imposing a fresh demand interest could only be levied, if any, after 30 days from 1.12.1995, if it was not paid within the said period. No substantial question of law arises.
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