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2014 (7) TMI 1131 - AT - Income TaxInterest charged under section 220(2) - CIT(A) deleted interest levy - Held that:- In the present case, the assessment under section 143(3) of the Act was completed on March 31, 1999 and the demand notice was issued. The said demand reached finality consequent to the order passed by the Tribunal on January 29, 2009, though the Commissioner of Income-tax (Appeals) had granted greater relief in his order under section 250 of the Act. Considering the facts of the present case, in view of the provisions of section 220(2) of the Act, the notice of demand must relate back to the original notice of demand. At no stage when the appeals were pending before the different forums, had the same lost its force. The moment there is finality of proceedings, the original notice of demand comes to the surface and for any default on the part of the assessee, the claim of interest can be levied. The contention raised by the assessee before the Commissioner of Income-tax (Appeals) in the instant case does not have merit on the basis of the original notice of demand. On finality of proceedings, the Assessing Officer can claim interest. We find that the stand taken by the Commissioner of Income-tax (Appeals) is contrary to the provisions of section 220(2) and being so, we are inclined to reverse the order of the Commissioner of Income-tax (Appeals) on this issue and restore that of the Assessing Officer. - Decided in favour of revenue.
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