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2018 (10) TMI 1404 - AT - Income TaxValidity of order passed under section 201(1)/201(1A) - order passed after 4 years from the end of the financial year under consideration - period of limitation - non deduction of tds - Held that:- There are series of decisions of Hon’ble High Courts on this issue wherein it was held that when no limitation provided for initiating the action by the AO and passing the order under the particular provisions of the Act, then a reasonable time limit for such action is 4 years from the end of the relevant financial year. Further, after the decisions of the Hon’ble High Courts on this issue, the legislatures have amended the provisions of section 201 of the Act and thereby provided the limitation of 2 years and 4 years respectively in specific cases for passing the order under section 201(1)/201(1A) of the Act. Having regard to the binding precedents as well as amended provisions of the Act, the impugned order passed by the AO is barred by limitation as it was after 4 years from the end of the financial year under consideration. Accordingly, we hold that the impugned order passed under section 201(1)/201(1A) of the Act is invalid being barred by limitation. Hence the same is quashed.
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