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2015 (10) TMI 478 - AT - Income TaxLevy of interest under Section 220(2) - contention of the assessee that the Assessing Officer has wrongly computed the interest under Section 220(2) from the date of original demand i.e. 30.4.2013 till the date of order giving effect to the order of the Hon'ble High Court on 22.3.2012 - Held that:- In case the Hon'ble High Court had confirmed the relief granted by Tribunal, the inevitable conclusion will be that the original notice of demand will survive and the default existed even in the period between the order of the Tribunal and that of the Hon'ble High Court and therefore interest u/s.220(2) of the Act was liable to be paid. Once the Tribunal’s order is vacated and the original order is revived, the original demand that remained unpaid also gets revived. The principle of continuing liability is applicable to the Income Tax Act, being a Scheduled Act. The principle of continuing liability was highlighted in the CBDT Circular No.334 dt.3.4.1982. In view of the above, we hold that the learned CIT (Appeals) was right in upholding the decision of the Assessing Officer in charging interest u/s.220(2) of the Act for the entire period from the date of original demand notice till the time when the order giving effect to the Hon'ble High Court of Karnataka was passed. Provisions of Section 220(1A) of the Act; in terms of which the demand would be valid till the disposal of appeal before the last appellate authority was introduced only in Finance Act, 2014 w.e.f. 1.10.2014 and therefore does not apply to the case on hand. We, however, find from a perusal of the impugned order that the learned CIT (Appeals) has neither invoked the provisions of Section 220(1A) of the Act nor even discussed the same while deciding the issue. We are of the view that the issue raised by the assessee does not require adjudication for deciding the issue at hand and these grounds are therefore dismissed as infructuous. - Decided against assessee.
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