M. J. RAO, C. J. ( 1 ) RULE D. B. This petition is filed by the petitioner for issuing a writ of certiorari quashing the charging of interest in a sum of Rs. 11,13,631. 00 u/s. 220 (2) of the Income-tax Act w. e. f. 1. 5. 1992 through demand notice dated 13. 11. 1992 which was issued pursuant to the rectification order u/s. 154 of the Act for the assessment year 1989-90. ( 2 ) THE petitioner filed return for the assessment year 1989-90 on 29. 12. 1989 declaring a loss of about Rs. 2. 92 crore. Assessment u/s. 143 (3) of the Act was framed by the 2nd respondent on 25. 3. 1992 determining the total income at more than Rs. 4 crore which was wholly set off against brought forward losses/ allowances. The assessment order and the demand notice were served on 31. 3. 1992. Subsequently [on 48. 1992 the second respondent issued a notice u/s. 154 to rectify the original assessment order dated 25. 3 1992 after meeting the objections of the petitioner. The 2nd respondent passed an order of rectification on 12. 11. 1992 determining the taxable income at about Rs 1. 97 crore and thereby raised a demand in the sum of Rs. 1,24,56,311. 00 which comprised of : (a) Tax including surcharge, (b) Interest u/s. 234 B, and (c) Interest u/s. 220 (2) of Rs. 11. 83,631. 00 ( 3 ) IN this W. P. the levy of interest u/s. 220 (2) of the Act is challenged. Learned counsel for the petitioner referred to S. 220 (2) of the Income-tax Act which reads as follows :- "section 220 (2) : If the amount specified in any notice of the demand under Section 156 is not paid within the period limited under subsection (1), the assessee shall be liable to pay simple interest at (one and one-half percent for every month or part of a month comprised in the period commencing from the day immediately following the end of the period mentioned in sub-section (1) and ending with the day on which the amount is paid) -. " ( 4 ) LEARNED counsel for the petitioner contends that in respect of the tax including surcharge referred to in the order of rectification dated 12. 11. 1992 a demand notice was served on 18. 11. 1992. " ( 4 ) LEARNED counsel for the petitioner contends that in respect of the tax including surcharge referred to in the order of rectification dated 12. 11. 1992 a demand notice was served on 18. 11. 1992. Though the demand notice based on the order of rectification was served on 18. 11. 1992, Rs. 11,83,631. 00 the interest demanded u/s. 220 (2) proceeds on the assumption that the petitioner is liable to pay interest on the amount now determined in the rectification order and as if it was not paid earlier. ( 5 ) LEARNED counsel contends that S. 220 (2) gives powers to the authority to levy interest only if the amount specified in any particular demand has not been paid in accordance with the S. 220 (1) and that the tax determined in the rectification order does not relate back to the assessment order. In our view, this submission of the petitioner s counsel is correct and is liable to be accepted. ( 6 ) SECTION 220 (2) states that if the amount specified in any notice of demand uls. 156 is not paid within the period limited u/s. 156 (1), the assessee shall be liable to pay interest at a particular rate. Now so far as the amount determined in the rectification order is concerned, a demand notice was issued only after the rectification order and therefore interest can be levied thereon only if there is nonpayment of the amount covered by the rectification order, on issue of a demand for the amount assessed. The rectification order cannot include interest u/s. 220 (2) payable on the tax additionally assessed in the rectification order unless there is a demand for the amount so additionally assessed. This position is also clear from S. 154. ( 7 ) SECTION 154 (4) of the Act states that where an amendment is made under this section, an order shall be passed in writing by the income-tax authority concerned. Clause (6) states that where any such amendment has the effect of enhancing the assessment or reducing a refund already made, the (Assessing) Officer shall serve on the assessee a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be issued u/s. 156 and the provisions of the Act shall apply accordingly. In other words, after the rectification order is issued, it is necessary to issue such further order of demand. ( 8 ) THE petition is therefore allowed. The rectification order dated 12. 11. 1992 showing Rs. 11,83,631. 00 as due towards interest u/s. 220 (2) is hereby set aside. It is, however, open to the respondents to demand interest from the petitioner u/s. 220 (2) in case of non- payment of the fresh amounts (a) and (b) referred to therein i. e. Rs. 56,41,956. 00 and Rs. 56,30,724. 00 respectively.