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2018 (3) TMI 1758 - AT - Income TaxDemand u/s 201(1A) - proceedings barred by limitation - default on account of failure to deduct the whole or any part of tax - whether the order passed by the TDS officer is void ab initio and bad in law being passed beyond limitation period as contended by the assessee? - HELD THAT:- The time limit for initiation of proceedings u/s 201(1) in the hands of the present assessee for the assessment years under consideration has expired long back prior to insertion of sec. 201(3) by Finance Act No.2 of 2009. The Hon’ble Gujarat, in the case of Tata Teleservices 2016 (8) TMI 509 - DELHI HIGH COURT] has considered the Memorandum of Finance Bill No.2 of 2009 explaining the provisions of sec. 201(3) as held that, in respect of F.Y 2007-08 and earlier years only proceedings that were pending could be completed by 31.3.2011 and as such no fresh proceedings could be commenced for the said period. (Paragraph 12.07 of the order). In the instant cases, we have held that the proceedings have become time barred prior to 01-04-2007 and hence no fresh proceedings could be commenced for the impugned years by virtue of the proviso to sec. 201(3) of the Act. Accordingly we hold that the initiation of proceedings u/s 201(1) of the Act for the assessment years 2000-01 to 2004-05 is barred by limitation. Accordingly we quash the orders passed by the tax authorities for the above said years. Demand for short deduction of tax as well as for non-payment of tax - Assessment Year: 2007-08 - A perusal of the order passed u/s 201(1)/(1A) would show that the AO has raised demand for short deduction of tax as well as for non-payment of tax after its deduction. We notice that the ld CIT(A) has wrongly applied the provisions of sec. 201(3) for the case of non-payment of tax after its deduction. We notice that there is no discussion about the same. Hence, we are of the view that the issue relating to non-payment of tax after its deduction should be adjudicated afresh by Ld CIT(A) as the provisions of sec. 201(3) shall not apply to the same. Accordingly, while upholding the order of Ld CIT(A) for the issue relating to short deduction of tax at source, we restore the issue relating to non-payment of tax after its deduction to his file for adjudicating the same afresh after hearing the assessee.
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