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2023 (11) TMI 87 - HC - Income TaxAssessee in Default u/s 201(1) and 201(1A) - period of limitation - non deduction of TDS on payments made to the international telecom operators - HELD THAT:- As respondent does not dispute the fact that the Division Bench of this very High Court itself recently had taken a view that there is no specific period of limitation prescribed for initiating a proceeding u/s 201(1) and 201(1A) of the Act. In the given factual backdrop and the recent decision of the Division Bench of this very High Court in the case of Dr. Reddys Laboratories Limited [2023 (9) TMI 111 - TELANGANA HIGH COURT] which as a matter of judicial propriety binds this Bench also, we are inclined to endorse the view of the Division Bench of this Court. What needs to be considered is the fact that the Division Bench in the case of Dr. Reddys Laboratories Limited (supra) have also considered the decision of the High Court of Delhi and have reached to a specific conclusion that the term ‘reasonable period’ in the absence of any statutory limitation cannot be accepted as a straight jacket answer. It was also held by the Division Bench of this Court that what is a reasonable period would depend on the facts and circumstances of each case. The Division Bench went on to quote that neither a period of four (4) years nor a period of one (1) year can be said to be the period of limitation for passing of an order under Section 201. Since the Commissioner of Income Tax (Appeals) so also the Tribunal have decided the two appeals accepting the period of limitation to be four (4) years, which in the teeth of the order of the Division Bench in the case of Dr. Reddys Laboratories Limited (supra) cannot be said to be proper, legal or justified. Thus the orders therefore, are not sustainable and the same deserves to be and are ordered accordingly. The matter is further ordered to be remitted back to the Commissioner of Income Tax (Appeals) for passing of fresh orders.
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