SHRI RAJESH KHANDELWAL,KOLKATA vs. I.T.O., WARD - 3(1), TDS, KOLKATA, KOLKATA
What did the Tribunal hold?
The tribunal found that the notice under section 201(1)/201(1A) was issued after the expiry of the limitation period prescribed under section 201(3) of the Act. Therefore, the impugned order and the demand raised were set aside.
What were the facts?
The assessee appealed against an order passed under section 250 of the Income Tax Act. The assessee also raised an additional ground that the impugned order under section 201(1A) was barred by limitation.
What were the issues?
Whether the order passed under section 201(1A) was barred by limitation as per section 201(3) of the Income Tax Act.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “C” BENCH KOLKATA
Before: Shri Sanjay Garg & Shri Girish Agrawal
order : February 22, 2023 आदेश / ORDER संजय गग�, �या�यक सद�य �वारा / Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order dated 31.08.2022 of the National Faceless Appeal Centre [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’).
At the outset, the ld. counsel for the assessee has taken additional legal ground pleading that the impugned order u/s 201(1A) was barred by limitation. He in this respect has relied upon section 201(3) of the Act, as applicable for the assessment year under consideration. The provisions of section 201(3) amended by Finance Act, 2012 with retrospective effect from 01.04.2010 is applicable which reads as follows: Assessment Year: 2012-13 Shri Rajesh Khandelwal
(3) No order shall be made under sub-section (1) deeming a person to be an assessee in default for failure to deduct the whole or any part of the tax from a person resident in India, at any time after the expiry of (i) two years from the end of the financial year in which the statement is filed in a case where the statement referred to in section 200 has been filed. (ii) six years from the end of the financial year in which payment is made or credit is given, in any other case Provided that such order for a financial year commencing on or before the 1st day of April, 2007 may be passed at any time on or before the 31st day of March, 2011.
A perusal of the impugned order passed u/s 201(1)/201(1A) reveals that the assessment year involved in this appeal is A.Y 2012-13. The notice u/s 201(1)/201(1A) of the Act was issued to the assessee on 07.01.2019 which is time-barred. In view of this, the provisions of section 201(3) of the Act as reproduced above are applicable for the assessment year under consideration. In view of this, the impugned order of the Assessing Officer is set aside and the demand raised u/s 201(1)/201(1A) is also quashed.
In the result, the appeal of the assessee stands allowed.
Kolkata, the 22nd February, 2023. Sd/- Sd/- [�गर�श अ�वाल/Girish Agrawal] [संजय गग� /Sanjay Garg] लेखा सद�य/Accountant Member �या�यक सद�य/Judicial Member Dated: 22.02.2023. RS Copy of the order forwarded to: 1. Shri Rajesh Khandelwal 2. ITO, Ward-3(1), TDS, Kolkata 3. CIT Assessment Year: 2012-13 Shri Rajesh Khandelwal (A)- 4. CIT- , 5. CIT(DR),
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