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2018 (6) TMI 1602 - AT - Income TaxDemand u/s 201(1) - Time limit as prescribed for initiation and completion of proceedings - order barred by limitation - scope of provisions of section 201 as amended by Finance Act, 2009 by insertion of sub–section (3) w.e.f. 1st April 2010 - HELD THAT:- As in NHK JAPAN BROADCASTING CORPORATION [2008 (4) TMI 182 - DELHI HIGH COURT] held that initiation of proceeding under section 201(1) after expiry of four years from the end of relevant financial year is barred by limitation. Thus, in view of the legal principal laid down in the decisions referred to above, the impugned order passed u/s 201(1) / 201(1A) is clearly barred by limitation as the initiation of proceedings under the said provision was after expiry of four years from the end of the relevant financial year i.e., financial year 2007–08. That being the case, the order passed under section 201(1) and 201(1A) of the Act deserves to be quashed. Hon'ble Gujarat High Court in Tata Teleservices Ltd. v/s Union of India [2016 (2) TMI 414 - GUJARAT HIGH COURT] have held that in respect of financial year 2007–08 and earlier years, only proceedings that were pending could be completed by 31st March 2011 and as such no fresh proceedings to be commenced for the said period. Undisputedly no proceedings under section 201 were pending before the AO. By the time the proceedings under section 201 of the Act were initiated by issuing notice under section 201 on 27th January 2014, it has already become barred by limitation. That being the case, looked at from any angle, the impugned order passed under section 201(1) and 201(1A) of the Act being barred by limitation has to be quashed. Accordingly, we do so. Consequently, the impugned order of the learned Commissioner (Appeals) is reversed and set aside.
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