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2016 (7) TMI 1515 - AT - Income TaxDemand u/s 201 - barred by limitation - proceedings initiated within the permissible time limit or not ? - HELD THAT:- In the case of the assessee, we noted that the Assessing Officer initiated the proceedings u/s 201(1)/201(1A) for the impugned assessment year on 09/02/2007. The proceeding was not concluded. The proceedings remained pending as on the date when the proviso to section 201(3) was inserted by the Finance Act No. 2 of 2009 with effect from 01/04/2010. It is not denied by the Learned A. R. of the assessee that the proceedings were pending as on 01/04/2010. The proviso to section 201(3) therefore, was clearly applicable in the case of the assessee which mandates that such order for a financial year commencing on or the first day of April, 2007 may be passed at any time on or before 31st day of March 2011. We noted that in the case of the assessee, the Assessing Officer has passed the impugned order on 10/03/2011 therefore, on this basis itself it cannot be said that the order passed by the Assessing Officer was barred by limitation. We may mention that in the case of NHK Japan Broadcasting Corporation [2008 (4) TMI 182 - DELHI HIGH COURT] as well as in the case of CIT v. Hutchison Essar Telecom Ltd. [2010 (4) TMI 45 - DELHI HIGH COURT] have held that the proceedings u/s 201(1) and 201(1A) of the Act can be initiated only within three years from the end of the assessment year or within four years from the end of the relevant financial year. In the case of the assessee, the relevant assessment year is the assessment year 2005-06 while the financial year is 2004-05. The Assessing Officer has initiated the proceedings on 09/02/2007. On the basis of these decisions also, the proceedings were initiated by the Assessing Officer within the permissible time. - Decided in favour of revenue.
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