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2017 (8) TMI 1684 - HC - Income TaxCharging of interest u/s 201(1A) - Period of limitation - Whether there is any period of limitation which can be applied in respect of proceedings under Section 201(1)/201(1A)? - HELD THAT:- As decided in Mass Awash Private Limited [2017 (7) TMI 664 - ALLAHABAD HIGH COURT] In State of Orissa Versus Debaki Debi [1963 (10) TMI 17 - SUPREME COURT], S. B. Gurbaksh Singh Versus Union of India [1976 (1) TMI 153 - SUPREME COURT] and CST Versus Halari Store [1997 (9) TMI 516 - SUPREME COURT] Court said that a power conferred without any time limit, if not exercised within reasonable time, unreasonable delay in exercise may effect its validity. However, it also held that what would be reasonable time is not to be fixed by Court since delay depends upon facts of each case. Though there are otherwise judgments in Uttam Namdeo Mahale Versus Vithal Deo and others [1997 (5) TMI 427 - SUPREME COURT] and Ishar Singh Vs. Financial Commissioner and others [1984 (7) TMI 396 - SUPREME COURT] but for the purpose of the present case, we proceed to hold that if a power is not exercised within a reasonable time, unreasonable delay which is not capable of explanation may affect validity of such power. Then next question would be, whether in exercise of power under Section 201 and 201(1A) of Act, 1961, in the case in hand, can it be said to be an exercise of power with unreasonable delay so as to invalidate such exercise of power. In the light of aforesaid we answer the question in favour of Revenue and against Assessee.
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