- (1.) BOTH these appeals have been filed by the Revenue against the common order of the learned Tribunal dt. 20th July, 2007, and therefore, are being decided by this common order.
(2.) IT is contended that the learned Tribunal was in error in holding that interest under Section 220(2) can be awarded only from the due date of demand notice issued for the reframed assessment order on the amount finally determined as taxable, and not from the due date of the original assessment order. The necessary facts in brief are, that the AO made a block assessment vide order dt. 28th May, 1998, that assessment was set aside by the Tribunal, and the matter was sent back to the AO to examine the matter afresh. Thereafter, the assessment was again made for the same income. Again that order was set aside by the Tribunal vide order dt. 31st March, 2005, and the matter was restored to the file of the AO with certain directions. Thereafter, the AO passed a fresh assessment order determining the total undisclosed income at Rs. 35,63; 120. It may be noticed that earlier the income determined was at Rs. 1,56,36,101. The question that arises and arose before the Tribunal was, as to whether the interest on this amount of Rs. 35,63,120 is required to be computed from the date, the amount became due pursuant to the original assessment order dt. 28th May, 1998, or from the date when it became due pursuant to the fresh assessment order passed after remand. The learned Tribunal found relying upon the Circular No. 334, dt. 3rd April, 1982 [(1982) 29 CTR (TLT) 48] that the matter is covered by para 2(i) thereof.
(3.) LEARNED Counsel for the Revenue contends that the matter is covered by para 2(ii) thereof and not sub -para (i).;