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TMI Blog2018 (9) TMI 2011X X X X Extracts X X X X X X X X Extracts X X X X ..... deduct tax at source on provision for expenses made in the end of the year; (ii) short deduction of tax at source on payments made towards supply of manpower; and (iii) non-deduction of taxes on payments made to distributors towards price protection and special price clearance discounts. 3. The respondent herein issued a show cause notice dated 8.2.2016 for all the three FYs in these appeals u/s/201(1) & 201(1A) of the Act for treating the Assessee as an Assessee in default for taxes not deducted at source and for charging interest on taxes not deposited into the Government Account on or before the dates, respectively. Sec.201(1) & 201(1A) of the Act reads thus:- "Consequences of failure to deduct or pay. 201.(1) Where any person, including the principal officer of a company,- (a ) who is required to deduct any sum in accordance with the provisions of this Act; or (b ) referred to in sub-section (1A) of section 192, being an employer, does not deduct, or does not pay, or after so deducting fails to pay, the whole or any part of the tax, as required by or under this Act, then, such person, shall, without prejudice to any other consequences which he may incur, be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpiry of seven years from the end of the financial year in which payment is made or credit is given." 6. It was the plea of the Assessee in reply to the show cause notice issued by the respondent on 8.2.2016 that the Assessee had filed TDS returns for the relevant FYs as per the details given below:- A.Y. 2009-10 For quarter ended 30 June 2008 on 22 September 2008; For quarter ended 30 September 2008 on 31 March 2009; For quarter ended 31 December 2008 on 31 March 2009; and For quarter ended 31 March 200 on 15 July 2009. A.Y. 2010-11 For quarter ended 30 June 2009 on 25 February 2010; For quarter ended 30 September 2009 on 25 February 2010; For quarter ended 31 December 2009 on 25 February 2010; and For quarter ended 31 March 2010 on 16 June 2010. A.Y. 2011-12 For quarter ended 30 June 2010 on 22 July 2010; For quarter ended 30 September 2010 on 15 October 2010; For quarter ended 31 December 2010 on 17 January 2011; and For quarter ended 31 March 2011 on 14 May 2011. 7. The Assessee submitted that since it had filed return of TDS for the relevant Financial Years as stated above, the provisions of Section 201(3)(i) of the Act would ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessee has filed cross objections before the Tribunal contending that there was no default u/s.201(1) of the Act and consequently no order could be passed u/s.201(1) & 201(1A) of the Act. 10. We have heard the submissions of the learned DR who reiterated the stand of the revenue as reflected in the grounds of appeal filed before the Tribunal, which reads as follows: "1. The order of CIT(A) is opposed to law and facts of the case. 2. The CIT(A) has erred in law as well as on facts in cancelling the order u/s. 201(1) and 201(1A). 3. The learned CIT(A) erred in treating the assessment as barred by limitations as per sub-section (1) of section 201(3) are not applicable in the present case as the assessee has not adhered to the provisions of Section 200 of the I.T. Act with regard to timely filing of Quarterly TDS Returns. For these and other grounds that may be raised during the course of appeal and actual hearing, the appellant prays that the order of learned Commissioner of Income Tax (Appeals) may be set aside and cancelled." 11. As can be seen from the grounds of appeal of the revenue, the only point raised by the revenue in these appeals is that the returns of TD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mended by Finance Act, 2012 amended on 28/5/2012 was specifically made applicable retrospectively w.e.f. 1/4/2012, whereby limitation period was substituted from four years to six years for passing orders where TDS Statement had not been filed. However, section 201(3) as amended by Finance Act No. 2 of 2014, as mentioned in the memorandum of the Finance Bill No.2 of 2014 is stated to have effect from 1st October, 2014. Thus, wherever the Parliament / Legislature wanted to make provisions applicable retrospectively, it has been so provided. The Hon'ble Gujarat High Court referred to the case of S.S. Gadgil AIR 1965 SC 720, wherein the Hon'ble Supreme Court had observed and held that in absence of an express provision or clear implication, legislature does not intend to attribute to the amending provision a greater retrospectivity than is expressly mentioned, nor to authorize the Income Tax Officer to commence proceedings which before the new Act came into force had upon the expiry of the period provided, become barred. The Gujarat High Court also noticed that similar view has been taken by the Hon'ble Supreme Court in the case of J. P. Jani, Income Tax Officer, Circle IV, Ward-G, Ah ..... 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