COMNR. OF TRADE TAX, U.P. vs M/S. KANHAI RAM THEKEDAR — C.A. No. 2679/2000

Case Summary: Commissioner of Trade Tax, U.P. v. M/s. Kanhai Ram Thekedar The Supreme Court dismissed the State's appeal, upholding that interest demand was unjustified due to inordinate delay. While confirming that interest liability under U.P. Trade Tax Act Section 8 arises automatically by operation of law without requiring a separate notice, the Court held that the four-year gap between the initial assessment order (June 1986) and the interest demand (July 1990) exceeded reasonable limits, particularly given the three-year rectification period prescribed by law. Accordingly, the assessee was absolved of interest liability, with the Court directing recovery be sought from the negligent assessing officers instead. This case analysis is maintained by casestatus.in based on publicly available court records.