TMI Blog2023 (11) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... ch of this very High Court in the case of Dr. Reddys Laboratories Limited [ 2023 (9) TMI 111 - TELANGANA HIGH COURT ] which as a matter of judicial propriety binds this Bench also, we are inclined to endorse the view of the Division Bench of this Court. What needs to be considered is the fact that the Division Bench in the case of Dr. Reddys Laboratories Limited (supra) have also considered the decision of the High Court of Delhi and have reached to a specific conclusion that the term reasonable period in the absence of any statutory limitation cannot be accepted as a straight jacket answer. It was also held by the Division Bench of this Court that what is a reasonable period would depend on the facts and circumstances of each case. The Div ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er passed by the Income Tax Appellate Tribunal, Hyderabad B Bench, Hyderabad, (for short the Tribunal ) in I.T.A. Nos. 166, 167, 168, 169 and 170/Hyd/2019 decided on 11.03.2020. 5. The question of law to be considered was whether the payments made to the international telecom operators be held to be in the nature of fees for technical services or not. 6. Initially the Assessing Officer had issued a show cause notice on 25.11.2016 to which the assessee gave his explanation categorically taking a stand that the payments made by the assessee to the international telecom operators do not fall in the category of fees for technical services . The Assessing Officer not being convinced with the submissions had passed an order holding that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 21.06.2023 wherein the Division Bench of this High Court vide its judgment dated 21.06.2023 in paragraph Nos. 26 to 31 held as under: 26. With utmost respect, we are unable to agree with the views expressed by the Delhi High Court. As we have already seen, initially the statute did not provide for any limitation, be it a resident Indian or a non-resident Indian. Subsequently, by way of amendment, sub-section (3) was inserted in Section 201 of the Act. Presently, the limitation for passing of an order under Section 201(1) of the Act post the last amendment is seven years insofar a person resident in India is concerned. The present case covers the assessment year 2016-2017, which is well after the last of the amendments were made and when ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imitation for a resident Indian, it would not be justified to read a limitation of less than seven years in the case of a non-resident. The difficulty that would accrue to realisation of tax qua a non-resident would be much more than that of a person, who is a resident. In our view, limitation period of seven years prescribed for a resident Indian would be a useful guide to determine what would be a reasonable period in the case of a non-resident Indian. 30. In the instant case, it is seen that following a survey operation under Section 133A of the Act on 30.12.2015, it was detected that petitioner had made two payments to two foreign companies but did not deduct TDS under Section 195 of the Act. It was thereafter that the show cause notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 22 had decided as a matter of principle not to challenge any further the judgment of the High Court of Karnataka in an identical issue in the case of Commissioner of Income Tax TDS, Bangalore vs. Vodafone South Ltd. 2016 (72) taxmann.com 347 (Karnataka). Thus the present appeals according to the learned counsel for the respondent is left only with academic interest and prayed for rejection of the appeals. 11. However, the learned counsel for the respondent does not dispute the fact that the Division Bench of this very High Court itself recently had taken a view that there is no specific period of limitation prescribed for initiating a proceeding under Section 201(1) and 201(1A) of the Act. 12. In the given factual backdrop and the recent de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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