(2)Where any notice of demand has been served upon an assessee and any appeal or other proceeding, as the case may be, is filed or initiated in respect of the amount specified in the said notice of demand, then––(a)such demand shall be deemed to be valid till the disposal of the appeal by the last appellate authority or disposal of the proceedings; and(b)any such notice of demand shall have the effect as specified in section 3 of the Taxation Laws (Continuation and Validation of Recovery Proceedings) Act, 1964.
