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2021 (7) TMI 21 - AT - Income TaxOrder u/s 201(1) read with section 201(1A) - time limit for the passing of the order - time limit for passing of an order u/s 201(1) - Period of limitation - HELD THAT:- It emerges from a perusal of the proviso that an order for the financial year 2007-08 or an earlier year is obligated to be passed on or before 31.3.2011. The deadline for passing of an order has been linked with the relevant financial year and not when the AO takes up the proceedings. It is trite law that a proviso ordinarily makes exception to and takes something away from the main provision. When the proviso to section 201(3) is stipulating for passing of an order before 31.3.2011, which is a period of more than two years as per the sub-section (3), it naturally follows that the ordinary time limit for the passing of the order within the main provision is a period of two years from the end of the relevant financial year in which the TDS statement is filed and it has no relation with the time when the AO takes up the proceedings for passing of an order. Thus we hold that the order u/s 201(1) of the Act was passed beyond the period of two years from the end of financial year in which the last TDS statement was filed. The same is hereby quashed as time barred. In view of our decision on the legal ground setting aside the order of the AO passed u/s 201(1), there is no point in considering the issue on merits as well.
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