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2014 (12) TMI 263 - HC - Income TaxWhether the tax effect being minimal the reference deserve consideration by the Court – Held that:- The position has to be seen and has to be governed at the time when the reference application was moved/filed and is thus in-applicable for the old pending references/reference applications – relying upon Commissioner of Income-Tax Vs. Rajasthan Patrika Ltd. [2002 (7) TMI 70 - RAJASTHAN High Court] - once reference has been admitted by the Court u/s256(1) or 256(2), then the matter cannot be disposed off merely because the tax effect is minimal - once a reference application of the Revenue had been allowed by this Court and reference was called at the instance of this Court, the question of law framed has to be answered on merits. Whether the Tribunal was right in holding that the interest u/s 139(8), 215 and 220(2) could not be levied upon the assessee from the date of assessment order i.e. 23.9.1976 – Held that:- Once the order has been revised or modified after passing of the assessment order it relates back to the assessment order as it is extension of the assessment order - the moment there is finality of the 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 revived from inception - the scope of proviso to Sec. 220(2) of the Act, the notice of demand, relates back to the original notice of demand - The revenue was well justified in charging interest u/s 220(2) of the IT Act - the intention of the legislature contemplated a situation, where the interest, being compensatory in nature, though tax having become due, still if the assessee does not pay, then the revenue has to be compensated by charging interest as prescribed u/s 220(2) of the IT Act - thus, the assessee is liable for interest u/s 220(2) as also interest u/s 139(8) and 215 – Decided in favour of assesse.
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