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2018 (11) TMI 40 - AT - Income TaxTime limit of completing the proceedings - non deduction of TDS u/s 194C - Assessee in default u/s 201(1) - Period of limitation - Held that:- Such an amendment brought by the Finance (No.2) Bill 2009 was clarified by CBDT vide Circular No. 5 of 2011 explaining the said amendment which came into effect w.e.f 1st April, 2010. The amendment as well as the said CBDT circular had come up for consideration of Vodafone Essar Mobile Services vs. Union of India (2016 (8) TMI 509 - DELHI HIGH COURT) wherein after detailed discussion referring to the catena of judgments held that CBDT Circular No. 5 of 2011, clarifying that the proviso to section 201(3) which was made to extend the time limit of completing the proceedings and passing orders in relation to the pending cases cannot be interpreted so as to enable the department to initiate proceedings for declaring assessee to be ‘assessee in default’ u/s 201 of the Act for a period earlier than four years prior to 31st March, 2011. Accordingly, their lordship held that the barred limit of four years which was earlier held by the Courts to be applicable in such cases cannot be extended by said amendment. Thus, respectfully following the ratio laid down Hon’ble High Court, we hold that the initiation of proceedings u/s 201(1) - Decided in favour of assessee.
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