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April 2023

Interest under section 220(2) — Original assessment order set aside and matter remanded — Fresh assessment order — Interest payable from such fresh assessment order.

By K. B. Bhujle, Advocate
Reading Time 4 mins
3 Principal CIT vs. AT and T Communication Services (India) Pvt Ltd
[2023] 451 ITR 92 (Del)
A. Y.: 2004-05
Date of order: 17th November, 2022
Section 220(2) of ITA 1961

Interest under section 220(2) — Original assessment order set aside and matter remanded — Fresh assessment order — Interest payable from such fresh assessment order.

The assessee is engaged in the business of network design, management, communication, connectivity services and related products. For the A. Y. 2004-05, the assessee filed its return of income on 30th October, 2004 declaring an income of Rs. 29,30,15,180. However, the income was assessed at Rs. 32,15,72,740 vide original assessment order dated 28th December, 2006. The Tribunal vide its order dated 30th September, 2014, set aside the original assessment order dated 28th December, 2006 and restored the matter to the file of the AO for determining the issue of taxability of the amounts received as brand building fund, the allowability of brand building expenses as well as a separate claim for other expenses. On 29th March, 2016 the AO reframed the assessment and passed a fresh assessment order under section 143(3) r.w.s 254 of the Act. The AO reconfirmed the disallowance of the brand expenses for a sum of Rs. 2,66,42,537 and the total income was determined as Rs. 31,96,57,720.

In the Income-tax Computation Form (ITNS 50) issued pursuant to the aforesaid assessment order, the AO levied
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