TMI Blog2011 (7) TMI 774X X X X Extracts X X X X X X X X Extracts X X X X ..... e legislative intention to prescribe any period of limitation for computing and recovering the arrears - It is true that a principle has been laid down in State of Gujarat v. Patel Raghav Natha (1969 -TMI - 104690 - Supreme Court of India), while dealing with suo motu revisional jurisdiction that though there is no period of limitation prescribed for exercise of that power, still such a power must be exercised within reasonable time - Decided in favor of the revenue. - ADARSH KUMAR GOEL, AJAY KUMAR MITTAL, JJ. Yogesh Putney for the Appellant. Pankaj Jain and Rishab Kapoor for the Respondent. JUGDMENT Ajay Kumar Mittal, J This order shall dispose of ITA Nos. 524 to 527 of 2009 as according to the learned counsel fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs 1994-95 and 1997-98. During the assessment years in question, the assessee had made the following payments of arrears of salary to its employees:- Financial Year Amount Paid 1994-95 Rs. 1,03,48,422/- 1995-96 Rs. 2,56,85,573/- 1996-97 Rs. 2,72,06,227/- 1997-98 Rs. 2,12,06,823/- While making the aforesaid payments, the assessee did not deduct tax at source as required under Section 192 of the Act. Accordingly, the Assessing Officer passed the orders under Sections 201(1) and 201(1A) of the Act on 20.12.2005 for the above mentioned financial years after issuing show cause notice to the assessee. Since the assessee did not supply the details regarding TDS liab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion prescribed for passing an order under Sections 201(1) and 201(1A) of the Act which are in the nature of effecting recovery of taxes from the assessee in default. 6. On the other hand, learned counsel for the assessee supported the order passed by the Tribunal and reiterated the submissions made before the Tribunal. 7. We find considerable force in the submission of learned counsel for the revenue. In Hindustan Times Ltd.'s case (supra), the employer had defaulted in making payment of provident fund contributions. Notice was issued by the department under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 on 23.2.1971 complaining of delay in remitting the provident fund amount for the various periods from July, 196 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extended to the employee's share of contribution as well. 19. In spite of all these amendments, over a period of more than thirty years, the legislature did not think fit to make any provision prescribing a period of limitation. This in our opinion is significant and it is clear that it is not the legislative intention to prescribe any period of limitation for computing and recovering the arrears. As the amounts are due to the Trust Fund and the recovery is not be suit, the provisions of the Indian Limitation Act, 1963 are not attracts. In Nityanand M. Joshi v. Life Insurance Corporation of India 1970 (1) SCR 396, it has been held that the Limitation Act, 1963 has no application to Labour Courts and, in our view, that principle is equall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. Union of India 1994 (1) SCC 45. In our view, this line of cases cannot ordinarily apply to monies withheld by a defaulter, who holds them in trust. 21. The reason is that while in the above cases decided by this Court the exercise of powers by the authority at a very belated stage was likely to result in the deprivation of property which rightly and lawfully belonged to the person concerned, the position under section 14B of the Act of an employer is totally different. The employer who has defaulted in making over the contributions to the Trust Fund had, on the other hand, the use of monies which did not belong to him at all. Such a situation cannot be compared to the above line of cases which involve prolonged suspense in regard to de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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