Commissioner Of Trade Tax,Lucknow vs M/S Kanhai Ram Thekedar

The Supreme Court held that a notice of demand is necessary before imposing interest on delayed tax payments under the U.P. Trade Tax Act. The Court affirmed the High Court's decision that the imposition of interest without prior notice was legally unsustainable, as the assessing authority's order was passed beyond the limitation period of three years. Consequently, the appeal by the Commissioner of Trade Tax was dismissed, upholding the High Court's ruling in favor of the respondent-assessee.