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2003 (11) TMI 19 - HC - Income TaxThe liability of an assessee to pay interest under section 220(2) of the Income-tax Act, 1961, after fresh demand is raised on the basis of the appellate order is the issue to be decided in this case - whether the petitioner is liable to pay interest under section 220(2) from the date of the original demand - Pursuant to the reframing of assessment, a fresh demand notice was issued asking to pay the amount mentioned within 35 days and the amount was paid within time. - Demand notice therefore, superseded the first demand notice. It is settled law that in a taxation statute one has to look at what is clearly stated. - In view of the clear language used in section 220(2) when a fresh demand notice is issued in pursuance of a fresh assessment order passed as a result of the appellate order, interest is payable only when the amount is not paid as per the fresh demand. – Assessee’s appeal allowed
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