2021 (2) TMI 282 - ITAT VISAAKHAPATNAM - Income Tax

Head Note / Extract:
Order u/s 201(1A) - TDS u/s 195 - Proceedings barred by limitation - assessee has not deducted the tax at source for the payment made to the NRI - assessee treated as assessee in default for non deduction of tax - HELD THAT:- In the instant case, the transaction took place on 24.04.2010 i.e. in the financial year 2010-11 and the AO passed the order on 22.03.2018 by issue of notice u/s 195 on 18.09.2017. Thus, the action taken by the AO was more than six years from the end of the financial year in which the transaction took place. Thus, the assessee’s case is squarely covered by the decision of Bheemarasetty Sunitha [2017 (8) TMI 476 - ITAT VISAKHAPATNAM]. Hence, we hold that the proceedings initiated by the AO are barred by limitation. Accordingly we set aside the orders of the lower authorities and allow the appeal of the assessee.