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2022 (2) TMI 235 - HC - Income TaxDefault u/s 201(1) and 201(1A) - period of limitation - TDS u/s 194H - payments towards supply of manpower and non deduction of taxes on payments made to distributors towards price protection and special price clearance discounts - whether section 201(1A)(3)(i) or (ii) of the Act would apply to the case of the assessee? - HELD THAT:- It is well settled in law that limitation prescribed under the Act is not a mere period of limitation but the same imposes a fetter on the power of the assessing officer to take action under the said provision. [See: 'S.S.GADGIL VS. LAL & CO. [1964 (4) TMI 19 - SUPREME COURT] and 'K.M.SHARMA VS. ITO',[2002 (4) TMI 7 - SUPREME COURT]]. In the instant case, admittedly, the statement referred to u/s 200 of the Act has been filed. A finding of fact in this regard has been recorded by the Commissioner of Income Tax (Appeals) as well as by the Tribunal. The limitation of 2 years as prescribed in Section 201(1A)(3) of the Act as it existed prior to its substitution by Act No.2/2014 applies to the facts of the case. The limitation to pass an order under Section 201(1A) of the Act expired prior to Finance Act No.2/2014, which came into force with effect from 01.10.2014. Thus, a right accrued to the assessee and the subsequent amendment therefore, could not have revived the period of limitation and take away the vested right accrued to the assessee. Therefore, it is evident that the order passed under Section 201 of the Act dated 30.03.2016 is clearly barred by limitation. - Decided in favour of assessee.
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