TMI Blog2015 (10) TMI 1502X X X X Extracts X X X X X X X X Extracts X X X X ..... emand within thirty days from the service of the demand notice in pursuance of the assessment order dated 21.12.2011. If the assessee fails to pay the amount demanded within the period specified under section 220(1), the assessee is liable to pay interest u/s.220(2) of the Act. On this issue, we do not agree with the findings of CIT(A). Our view is further fortified by the Hon’ble Bombay High Court in the case of CIT Vs. Chika Overseas (P) Ltd. (2011 (11) TMI 118 - BOMBAY HIGH COURT ) and Vikrant Tyres Ltd. (2001 (2) TMI 129 - SUPREME Court). In view of our above finding, this ground of appeal of the assessee is allowed.” The period specified under section 220(1) has to be taken into consideration from the date of passing of the fresh a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals) to consider the issue afresh. The Commissioner of Income Tax (Appeals) passed order once again holding that replacement of machinery could not be considered as revenue expenditure applying the decision of the Hon ble Supreme Court in the case of Mangayakarasai Mills Pvt. Ltd. (315 ITR 114) consequent to the order of the Commissioner of Income Tax (Appeals) the Assessing Officer passed order levying interest under section 220(2) of the Act from the date of original assessment order. The assessee preferred appeal before the Commissioner of Income Tax (Appeals), who confirmed the levy of interest under section 220(2) of the Act from the date of original assessment order. The assessee preferred appeals before us. 3. At the time of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted that since the original assessment order was set aside and the Tribunal had remanded the matter back to the Assessing Officer for deciding the issue afresh after taking into consideration the judgement passed by the Hon ble Supreme Court of India, interest under section 220(2) cannot be levied from the date of original assessment order i.e. dated 30.12.2008. Whereas the learned DR has vehemently argued that levy of interest under section 220(2) cannot be a subject matter of appeal as the same is not appellable. To support his contentions the DR has relied on the judgement of the Hon ble jurisdictional High Court in the case of CIT Vs. Suresh Gokuldas (supra) . 14. A perusal of the aforesaid judgement would show that the Hon ble H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment is reframed, interest can be charged only after the expiry of 35 days from the date of service of demand notice pursuant to such fresh assessment order. 16. The Assessing Officer has levied interest under the provisions of section 220(2) from the date of passing of the original assessment order whereas the original assessment order was set aside by the Tribunal and the same was remitted back to the Assessing Officer for deciding the matter afresh. Since a fresh assessment order has been passed by the Assessing Officer, the demand notice period specified under section 220(1) has to be taken into consideration from the date of passing of the fresh assessment order. The assessee is liable to pay demand within thirty days from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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