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2023 (8) TMI 1189 - ITAT NGAPURCondonation of delay - delay of 988 days in the filing of the appeal - validity of Order passed u/s 201(1)/(1A) - period of limitation - HELD THAT:- The case of the assessee-branches is that they received notice individually about the default in compliance, but were not technically equipped to handle the issue. Some branches appointed consultants at individual level, who also kept on changing. Thereafter, the Zonal office of Bank of India, Nagpur, took up the matter for all the branches of Nagpur zone by appointing a centralized consultant, who filed the appeals for all the branches in coordination with income-tax department and addressed all the pending disputes anent to this issue. The delay in presenting the appeals was neither deliberate nor an act of negligence, but was caused by genuine difficulty and inability to act promptly at branch level due to reasons adduced above. Ex consequenti, we hold that there was a reasonable and sufficient cause for the delay in presenting the appeals before the ld. CIT(A). We, therefore, condone the delay. Limit limit to pass order u/s. 201(1)/201(1A) - default for non-deduction of tax at source u/s 194A on interest paid/credited to its customers - HELD THAT:- As the time limit for the passing of the order u/s. 201(1)/201(1A) for the financial years under consideration came to an end on 31-3-2013 and 31-03-2014. The amendment by the Finance (No.2) Act, 2014 came into force on 01-10-2014. This shows that on 01-10-2014, the time limit for passing the order u/s. 201(1)/201(1A) had already expired qua the financial years 2009-10 and 2010-11. A subsequent amendment to the provision cannot give a new lease of life to the time limit which has already exhausted. Hence, for the years under consideration, it is only the sub-section (3) as amended by Finance Act, 2012 with retrospective effect from 01-04-2010, which shall prevail. Resultantly, the orders passed by the AO beyond the stipulated time limit are time barred and hence quashed. In the absence of the existence of any valid orders u/s. 201(1)/201(1A), the proceedings flowing therefrom also get annulled. We, therefore, overturn the impugned orders holding the assessees to be in default in terms of section 201 of the Act. Assessee appeal allowed.
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