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2010 (11) TMI 692 - AT - Income TaxPayments made to NSICT for the movement of the containers from or up to the vessel - TDS u/s 194C or u/s 194J - Amount of tax u/s.201(1) and interest u/s.201(1A) - held that:- the assessee rightly deducted tax at source u/s.194C and there was no liability to deduct tax at source u/s.194J, this ground challenging the demand of differential amount of tax u/s.201(1) and interest u/s.201(1A) has become infructuous Time limit for passing decision u/s 201(1) or 201(1A) - held that:- both the initiation of proceedings u/s. 201(1) as well as the completion of such proceedings by passing order have to be prior to the time limit within which the tax can be determined in the hands of the payee. It cannot be beyond such period. If the payee has included the amount received from payer in his total income but the tax has not been paid in full or part then the payer can be treated as assessee in default to the extent of the non-payment of tax on the sum paid to him provided the tax is not recovered from the payee - Thus the maximum time limit for initiating and completing the proceedings u/s. 201(1) has to be at par with the time limit available for initiating and completing the reassessment. This is the view which has been canvassed by the special bench of the tribunal in Mahindra and Mahirdra (2009 -TMI - 59571 - ITAT BOMBAY-H). - Decided in favor of assessee.
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