- (1.) WE have heard Sri Shubham Agrawal, learned counsel for the Income Tax Department and Sri R.S. Agarwal, learned counsel for the assessee.
(2.) FOR the Assessment year 1989 -90 the Assessment Order was passed on 26.3.1992 and a notice of demand was issued. The assessee moved an application under Section 154 of the Income Tax Act (hereinafter referred to as the Act) claiming that the Assessing Officer committed a mistake which is apparent on the face of the record and that the Assessment Order requires rectification. The application of the assessee was allowed and the Assessing Officer passed a Revised Assessment Order dated 15.9.1994, as a result, the Assessment was revised at nil and the Assessing Officer issued a refund voucher of Rs. 2,48,33,266/ - and another refund voucher of Rs. 76,04,798. Subsequently, the Department issued a notice under Section 154 of the Act on 16.10.1995 pursuant to which another rectification order dated 1.12.1995 under Section 154 of the Act was passed pursuant to which a fresh revised notice of demand and Challan was issued. Pursuant to the order under Section 154 interest under Section 220(2) of the Act was charged from the date of the original Assessment Order dated 26.3.1992.
(3.) THE applicant being aggrieved by this part of the order charging interest from 1992 filed an appeal which was dismissed and, thereafter, preferred a Second Appeal before the Tribunal which was allowed. The Department being aggrieved by the order of the Tribunal has filed the present appeal under Section 260(A) of the Income Tax Act contending that a substantial question of law arises for consideration, namely, that interest under Section 220(2) was chargeable from the date of the Original Assessment Order dated 26.3.1992 and not from the date of the revised order under Section 154 dated 1.12.1995.;