TaxTMI 
TaxTMI 
1984 (6) TMI 207
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....xhibit P1 order dated 18th May, 1981. For the years 1975-76, 197677 and 1977-78 the penalties levied were reduced, by exhibits P2, P3 and P4 orders dated 16th July, 1981. Earlier, in pursuance to the original orders, recovery proceedings were started. The properties of the petitioner were attached on 31st January, 1981. The amount due then was Rs. 21,093.45. Even after the passing of the revisional orders, evidenced by exhibits P1 to P4, recovery proceedings were continued for recovering the same amount. In this original petition, exhibit P6 dated 18th March, 1982 a notice issued under the Revenue Recovery Act in form No. 16 regarding sale of immovable property, is assailed as illegal. The notice (exhibit P6) was in pursuance to the notice ....
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....dated 18th July, 1983 has been filed. The main contention of the petitioner is, that there should be a fresh notice of demand after the decision in the appeal or revision, either modifying or setting aside the original assessment order. According to counsel, the notice of demand issued originally will fade the moment the assessment order is set aside or modified. In this case, the assessment orders have been modified by the revisional orders, by exhibits PI to P4. So, a fresh notice of demand should be issued before further recovery proceedings are pursued. Reliance is placed on the decision reported in Incometax Officer v. Seghu Buchiah Setty [1964] 52 ITR 538 (SC). It is true, that ordinarily if an order of assessment is set aside or modi....
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....officer or authority; (iii) any proceedings initiated on the basis of the notice or notices of demand served upon the assessee before the disposal of such appeal or proceeding may be continued in relation to the amount so reduced from the stage at which such proceeding stood immediately before such disposal; ...................................." 3.. A bare perusal of the above statutory provision makes the position clear. It shall not be necessary for the taxing authority to serve upon the assessee a fresh notice of demand after the decision rendered in appeal or in revision, whereby the assessment order is modified or set aside and the amount due is reduced. But under section 3(1)(b)(ii) it is mandatory that the taxing authority shall g....