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2013 (8) TMI 995 - AT - Income TaxProceedings u/s 201 - Held that:- The survey proceedings and assessment proceedings are two different and distinct proceedings . The letter dated 14-01- 2009 was in continuation to the information gathered on 29-12-2008. Therefore, it cannot be said that proceedings u/s 201 of the Act was initiated. A bare reading of Section 201 makes it clear that it is invoked as a consequence of failure to deduct or pay tax. Therefore, in our considered view, the information gathered during survey proceeding and on the basis of such information, if the AO finds that assessee was required to deduct tax and the assessee has not deducted the tax or has not paid the tax after deduction then he would be empowered to invoke the provisions of Section 201 of the Act by issuing show cause notice for initiation of proceedings u/s 201 of the Act. Hence, the point of time when the AO finds that the assessee was required to deduct tax and has not deducted or paid consequence thereof, he issues the show cause notice to the assessee would be starting point for reckoning limitation for the purpose of Section 201 of the Act. In view of the above discussions, we find no merit in the ground raised by the assessee and the same is hereby rejected. - Decided against assesse.
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