TMI Blog2021 (7) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... er 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an order before the ld. CIT(A). It also raised an additional ground before the ld. first appellate authority to the effect that the order passed by the AO was time barred. The ld. CIT(A) admitted the additional ground but dismissed the same on merits by holding that the order passed in the year 2017 was governed by the then existing time limit u/s 201(3) of the Act as amended by the Finance (No.2) Act, 2014. Aggrieved thereby, the assessee has come up in appeal before the Tribunal. 4. We have heard both the sides through Virtual Court and gone through the relevant material on record. The admitted position is that the TDS Statements were filed by the assessee within time and the return for the last quarter was filed on 03.05.2010. The cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o years under clause (i), with which we are concerned, for passing of an order u/s 201(1) of the Act from the end of the financial year in which the statement referred to in section 200 has been filed. Last of such statement was filed by the assessee on 3.5.2010. A period of two years from the end of the F.Y. 2011-12 came to an end on 31.3.2014. As against that, the order was actually passed on 27.3.2017. If we go with the 2009 insertion, the order was clearly time barred. 7. The Department has set up a case that since the order was passed in March, 2017, it is the law prevalent at that time, which is correctly applicable, being, sub-section (3) of section 201 as substituted by the Finance (No.2) Act, 2014 w.e.f. 1.10.2014 providing that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2) Act, 2014 came into force, there was already some time left with the AO for passing of the order u/s 201(1) in respect of the TDS Statements filed by the assessee and such hitherto reduced period from two years came to be enlarged with the expanded period of seven years. This can be understood with the help of an example. An assessee files a TDS statement for the F.Y. 2012-13 and the time limit of two years for passing the order as per the 2009 insertion of section 201(3)(i) is still there and then comes the amendment of 2014 enhancing the time limit for passing of the order. Patently, such a situation is quite different from the one under consideration, where the time limit for the passing of an order for the F.Y. 2009-10 already came t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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. 11. To sum up, we hold that the order u/s 201(1) of the Act was passed beyond the period of two years from the end of fina ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
