S.APPASWAMY Vs. DCIT

JUDGEMENT

(1.) The Assessee has filed this appeal under Section 260A of the Income Tax Act, 1961 ('Act' in short) raising the following substantial in TCA No.916 of 2009 [S.Appaswamy vs. DCIT] question of law, arising from the order of the Income Tax Appellate Tribunal, Chennai Bench 'B' dated 30.04.2009 in ITA No.1693/MDS/ 2008.dated 30.04.2009 for the Assessment Year 1991-1992, whereby the learned Tribunal allowed the appeal of the Revenue and upheld levy of interest under Section 220(2) of the Act, on the Assessee.

(2.) A Co-ordinate Bench of this Court, admitted the appeal on 07.10.2009, on the above substantial question of law raised by the Assessee.

(3.) Learned counsel for the Assessee has urged before us that since by the order dated 30.04.2009, the learned Tribunal has set aside the order of the Assessing Authority, the levy of interest for the period till the fresh Assessment Order is passed upon such remand by the Tribunal stood suspended and the Assessing Authority has erred in adding back such amount of interest under Section 220(2) of the Act in in the Appeal Effect Order dated 22.03.2006 amounting to Rs.10,05,030/- which was imposed in the Original Assessment Order dated 15.03.1999 for the Assessment Year 1991-1992 in question. She relied upon the Circular of the Central Board of Direct Taxes, in Circular No.334 dated 03.04.1982 and submitted that if the Assessment Order is cancelled under Section 146 or set aside by an Appellate / Revisional Authority and that cancellation / setting aside becomes final, then, interest under Section 220 if any, can be charged only after a fresh demand notice upon fresh assessment re-framed in pursuance of such remand by the Higher Appellate Authority. She also relied upon the decision of the Rajasthan High Court in the case of Commissioner of Income Tax vs. Rajesh Kumar Dinesh Kumar in (2010) 325 ITR 346.