Assessee-society was assessed) and a demand of certain amount was raised.  Assessee filed an appeal and Commissioner (Appeals) allowed same-Consequently, revenue refunded tax deposited by assessee along with statutory interest. Tribunal allowed revenue’s appeal. To give effect to Tribunal’s order, a fresh notice under section 156 was issued raising demand which included recovery of earlier refund.  Assessee deposited tax liability and refunded interest. Thereafter, a separate demand of interest was raised under section 220(2). The assessee challenged the demand by filing writ petition. Allowing the petition the Court held that   since liability assessed by Assessing Officer was set aside by First Appellate Authority, as soon as Appellate Authority set aside assessment order, notice issued under Section 156 lost its significance and ceased to exist  hence the  petitioner was not liable to pay interest as per first notice issued under section 156.Since revenue issued fresh notice under section 156 which was in consequence of orders passed by Appellate Tribunal under section 254, liability of interest would commence if liability was not discharged within period specified in notice issued under section 156. Therefore, liability of interest commenced from day immediately following expiry of one month period from fresh notice under section 156. Court also held that  the circular dated April 3, 1982 ((1982) 135 ITR (St.) 10) issued by the Central Board of Direct Taxes was not binding upon the court.