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2018 (3) TMI 1981 - AT - Income TaxAddition u/s.201(1) r.w.s. 201(1A) - period of limitation - HELD THAT:- Limitation in initiating proceedings u/s.201(1) of the Act would therefore, be governed by section 201(3)(i) of the Act as it stood at the relevant time wherein it provided for a period of limitation of two years from the end of the Financial Year in which the statement was filed as referred under section 200. Their limitation for initiating action u/s.201(1) for the statement filed on 04.09.2010 has elapsed on 31.03.2013 whereas the time limitation for initiating action u/s.201(1) for the statement filed during period from 23.10.2010 to 15.05.2012 was elapsed on 31.03.2014. We may also observe that the amendment in section 201 of the Act as amended by Finance Act No.2 (2014) came into force w.e.f. 20.05.2012. Therefore, the impugned notice and order u/s.201(1) in respect of the appeals under consideration have been clearly barred by limitation, therefore, same cannot be sustained in the light of the decision in case of M/s. Tata Tele Services vs. Union of India [2016 (2) TMI 414 - GUJARAT HIGH COURT] and M/s. Troikaa Pharmaceuticals Ltd. Vs. Union of India 2016 (3) TMI 285 - GUJARAT HIGH COURT]. It may also be noted that amendment made to section 201(3) by Finance Act 2014 is prospective in nature and is applicable from 01.10.2014 wherein, the time to pass order u/s 201(1) was increased to seven years from the end of the financial year in which the payment is made or credit is given. Therefore, the said amendment is not applicable for those assessment years for which time limit to pass the order u/s.201(1) is expired 01.10.2014. Since in the case of assessee, the time limit for passing the order u/s.201(1) of the Act has expired on 31.03.2013 and 31.02.2014 respectively i.e. 01.10.2014. Therefore, the impugned order under appeal is clearly barred by limitation. Accordingly, the order passed u/s.201(1A) of the Act for the impugned assessment years under consideration are therefore quashed on this legal ground.
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