KAIT Act 46Chapter VII · Procedure for Assessment

Section 46 · Changes in demand consequent to appeal, revision or other proceedings

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(1)

Where any notice of demand under this Act is served upon an assessee and any appeal or other proceeding is filed or taken in respect of such demand then-

(a)

where the demand is enhanced in such appeal or other proceedings, the Agricultural Income tax Officer shall serve upon the assessee another notice of demand also in respect of the amount by which such demand is enhanced; and any proceedings in relation to such demand, as are covered by the notice or notices of demand served upon him before the disposal of such appeal or proceeding may, without the service of any fresh notice of demand be continued from the stage at which such proceedings stood immediately before such disposal;

(b)

where such demand is reduced in such appeal or other proceeding,-
(i)it shall not be necessary for the Agricultural Income tax Officer to serve upon the assessee a fresh notice of demand;
(ii)the Agricultural Income tax Officer shall give intimation of the fact of such reduction to the assessee, and where a certificate has been issued or all application or requisition has been made to any officer or authority for the recovery of such demand, also to such 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 other proceeding may be continued in relation to the amount so reduced from the stage at which such proceeding stood immediately before such disposal;

(c)

no proceedings in relation to such demand (including the imposition of penalty) shall be invalid by reason only that no fresh notice of demand was served upon the assessee after the disposal of such appeal or other proceeding:
Provided that if such demand has been reduced as a result of any final order and the penalty imposed on the assessee for default in payment thereof exceeds the amount so reduced, the excess shall not be recovered and if it has already been recovered, it shall be refunded to the assessee in accordance with the provisions of this Act:Provided further that where any demand is reduced in such appeal or other proceeding and the assessee is entitled to any refund thereof, such refund shall be made in accordance with the provisions of this Act.

(2)

No fresh notice of demand shall be necessary in any case where the amount of demand is not varied as a result of any order passed in any appeal or other proceeding under this Act.

(3)

Where as a result of any final order, the amount of tax, with respect to the default in the payment of which-

(a)

interest was levied has been annulled, the interest levied shall be cancelled and the amount of interest, if any, paid shall be refunded;

(b)

interest was levied has been reduced, the interest levied, shall be proportionately reduced and the interest, if any, found as paid in excess consequent on such reduction, shall be refunded.

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