M. JAGANNADHA RAO ( 1 ) RULE D. B.-This petition is filled by the petitioner for issuing a writ of certiorari quashing the charging of interest in a sum of Rs. 11,83,631 under Section 220 (2) of the Income-tax Act with effect from 1-5-1992 through demand notice dated 13-11-1992 which was issued pursuant to the rectification order under Section 154 of the Income-tax Act for the assessment year 1989-90. The following are the facts ( 2 ) THE petitioner filed return for the year ending 31st March, 1989 relating to the assessment year 1989-90 on 29th December. 1989 declaring a loss of Rs. 2,91,95,935. Assessment under Section 143 (3.) of the Act was framed by the 2nd respondent on 25th " March, 1992 determining the total income at Rs. 4,37,87,944 which was wholly set off against brought forward losses j allowances. The assessment Order and the demand notice were served on 31st March, 1992 (Annexures P-2 and P-3 ). Subsequently on 4th August, 1992 the second respondent issued, a notice under Section 154 to rectify the original assessment order dated 25th March, 1992 after meeting the objections of the petitioner. The 2nd respondent passed an order of rectification on 12th November, 1992 determining the taxable in come at Rs. 1,97,39,599 and thereby raised a demand in the sum of Rs. 1,24,56,311 which comprised of the following items :-- (a) Tax including surcharge Rs. 56,41. 956 (b) Interest u/s 234b Rs. 65,91,738 (c) Interest uls 220 (2) Rs. 11,83,631 Rs. 1,24,56,311 ( 3 ) IN this petition he levey of interest of Rs. 11,83,631 under Section 220 (2) of the Income-tax Act which is at rem (c) is challenged Learned counsel for the petitioner referred to Sec ion 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 sub-section (1 ). , the assessee shall be liable to pay simple interest at (one and one-half per cent for every month or part. of a month comprised in the period commencing from the day impediately following the end of the period mentioned in subjection (1) and ending with the day on which the amount is paid ). . . . . ". Bharat Commerce and Industries Ltd. Vs. of a month comprised in the period commencing from the day impediately following the end of the period mentioned in subjection (1) and ending with the day on which the amount is paid ). . . . . ". Bharat Commerce and Industries Ltd. Vs. Commissioner of Income-Tax Central- Another ( 4 ) LEARNED counsel for the petitioner contends that in respect of the tax including surcharge referred to in the order of rectification dated 12th November, 1992 a demand notice was served on 18th November, 1992. Though the demand notice based on she order of rectification was served on 18th November, 1992, Rs. 11,83,631 the interest demanded under Section 220 (2) proceed? 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 Section 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 Section 220 (1) and that the tax determined in the rectification order does not relate back to the assessment order. In our view, this submission cf the petitioner s counsel is correct and is liable to be accepted. ( 6 ) SECTION 220 (2) rates that if the amount specified in any notice of demand under Sect on 156 is not paid within the period limited under subjection (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 was issued and therefore interest can be levied thereon only if there is non-payment of the amount covered by the rectification order, on issue of a demand for the amount assessed. The rectification order cannot include interest under Section 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 Section 154. ( 7 ) CLAUSE (4) of Section 154 of the Income-tax Act states that where an amendment is made under this section, an order shall be passed in writing by the income-tax authority concerned. This position is also clear from Section 154. ( 7 ) CLAUSE (4) of Section 154 of the Income-tax 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 under Section 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 a due towards interest under Section 220 (2) is hereby set aside. It is, however, open to the respendents to demand interest from the petitioner under Section 220 (2) in case of non-payment of the fresh amounts (a) and (b) referred to therein i. e. Rs, 56,41. 956 and Rs. 56. 30. 724 respectively.