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2018 (10) TMI 927 - AT - Income TaxTDS u/s 195 - Limitation for issue of notice u/s 201(1)/201(1A) - proceedings initiated after lapse of 5 years - failure to deduct TDS on transfer of immovable property to the assessee by the non-resident - assessee in default - Held that:- In the instant case the fact that the vendor is NRI was recorded in the sale deed itself, as evident from the Ld.CIT(A)’s order and he is the resident of 7690A, Green Meadow, USA. Having recorded the residential status in sale deed no extra time is required to prosecute the matter against the payee and the payer. All the vendors are shown as residents of India. The assessing officer was under the impression that the vendor was resident of India, thus taken the time for initiating the proceedings u/s 201(1)(1A) of the act. Where as in the instant case residential status was recorded in the sale deed and the AO determined the nil demand in the assessment in representative capacity. The department could not demonstrate the reasons for delay. It is also observed from the facts that the department has initiated simultaneous proceedings against the assessee as well as the vendor. Therefore, the facts of the case law relied upon by the Ld.CIT(A) are distinguishable and not applicable to the assessee’s case. Since, the facts of the assessee's case are identical to the decision of the Tribunal in the case of Bheemarasetty Sunitha [2017 (8) TMI 476 - ITAT VISAKHAPATNAM], respectfully following the view taken by this Tribunal, we hold that the notice issued by the AO in this case is beyond 4 years and the same is barred by limitation. Therefore, we set aside the order of the CIT(A) and quash the orders passed u/s 201(1)/201(1A) by the AO and allow the appeal of the assessee.
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