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2017 (7) TMI 664 - HC - Income TaxTDS u/s 195 - interest u/s 201(1) and 201(1A) - Held that:- We find it difficult to hold that period consumed by Revenue in prosecuting matter against main payee would have resulted in accrual of a right upon Assessee so as to deprive Revenue from proceeding u/s 201 (1) and 201(1A), though, admittedly, Assessee-petitioner has committed default by not complying Section 195 by non-deduction of TDS on the amount paid to Smt. Nidhi Raman. Defence of petitioner that it was misrepresented by seller by not disclosing by any of them that she was an N.R.I. would equally be available to Revenue also for explaining delay and also their bonafide is fortified that they make all possible efforts to recover entire amount of tax from person liable to pay tax and as a last resort they have sought to exercise power under Section 201 (1) and 201(1A) against Assessee. While exercising power of judicial review in the case like present one, it would be appropriate to consider whether power has been exercised by competent authority within a reasonable period and whether delay is unjust, arbitrary, whimsical or it is for valid reasons. If Court finds that delay in exercise of power is for valid and bonafide reasons,alleged delayed exercise of power cannot be held invalid. We, therefore, find ourselves unable to agree with the submission of learned counsel for petitioner that proceedings initiated by respondents-Revenue Authorities under Section 201(1) and 201(1A) is bad being barred by period of limitation.
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