Updated 4:27pm: John Banks says the sun is shining very brightly in his life today.

The Court of Appeal has quashed his conviction for filing a false electoral return in the 2010 Auckland mayoralty race.

A retrial has been ordered.

"I have to say that at twenty to twelve this morning, I felt like waking from a three year nightmare."

"It has been tough day in, day out. It has been tough for my wife Amanda, it has been tough for my kids, it's been tough on my friends," he says. 

John Banks says he's not fearful of any further judicial process. 

In August, the former MP was sentenced to two months' community detention after being found guilty of knowingly filing a false return in relation to donations from Kim Dotcom, which were declared as anonymous.

During the appeal, Mr Banks' legal team sought to introduce evidence from two US businessmen.

The court says although it wasn't fresh evidence, it's satisfied that if the evidence had been before the trial judge, the outcome may have been different.

A retrial will hear from those businessmen.

Dotcom casts doubt on new evidence

Kim Dotcom says new evidence from John Banks's team doesn't change anything.

Mr Banks's conviction for filing a false electoral return has today been quashed and a retrial ordered by the Court of Appeal.

The retrial will hear from two new witnesses who will evidence about a lunch where campaign donations where allegedly discussed.

Dotcom says the lunch the witnesses were at was on a different day from the day donations were talked about.

He says the dates mentioned in previous evidence and recorded on cheques will prove him right.