1986 (4) TMI 96

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....mmon order dated 31-7-1984 of the AAC. They were heard together and disposed of by this common order for the sake of convenience. 2. These two orders have been passed against the appellate order passed under section 154 of the Income-tax Act, 1961 ('the Act'). The assessee claimed interest on refunds due to it for the assessment year 1968-69 and 1976-77. In orders under section 154, the ITO ref....

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....m of Rs. 4,469 arose on account of the regular assessment. This assessment was set aside on 26-4-1975 and another assessment was made which was also set aside on 2-2-1979. The next assessment was made on 28-3-1981 under section 144 of the Act which was again reopended under section 146 of the Act. The final assessment for this year was made on 23-9-1981 according to which the entire regular demand....

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....t and the period for which interest is to be paid on refund delayed beyond a period of three months. 5. Shri B. Chakraborty, the learned representative for the assessee, on the other hand, supported the order of the AAC on the ground that the refund arose when the demand was set aside on 26-4-1975 and so interest started running after the expiry of three months from 26-4-1975. 6. Coming to t....

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....ax and self-assessment tax. This amount has not been paid on the basis of a regular assessment. 7. We have considered the contentions of both the parties as well as the facts on record. In our opinion, when an assessment is set aside and the assessment is restored to the file of the ITO the demand that was earlier raised by the ITO ceases to exist. But the question which arises is whether any a....