Section 201(3) of the Income Tax Act

Income-tax Act, 2025: s.398

Section 201(3) falls under section 201 of the Income-tax Act, 1961, which corresponds to section 398 (Consequences of failure to deduct or pay or, collect or pay) of the Income-tax Act, 2025.

Read section 398 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 201(3) is State Bank of India v. Assistant Commissioner of Income-tax (144 Taxmann.com 131), cited in 35 of the 131 judgments on BharatTax that turn on this section.

Leading authorities on Section 201(3)

State Bank of India v. Assistant Commissioner of Income-tax
144 Taxmann.com 131 · 2022 · Supreme Court
35
citing judgments

An assessee is required to deduct tax at source on reimbursements, even if the assessee acted under a bona fide belief that such reimbursements were exempt.

Lifestyle International (P.) Ltd. v. Assistant Commissioner of Income-tax
141 Taxmann.com 559 · 2022 · Reported
12
citing judgments

Orders passed under section 201(1)/201(1A) of the Income-tax Act are only applicable for financial year 2014-15 onwards and not for any prior financial year, as they are time-barred. Consequently, proceedings flowing from invalid orders are annulled.

Judgments on Section 201(3)

Ansal Housing Limited, New Delhi vs. Deputy Commissioner of Income Tax, Delhi

ITA 6795/DEL/2026[2015-16]Status: DisposedITAT Delhi18 Sept 2026AY 2015-16

Bench: Shri Mahavir Singh & Shri S. Rifaur Rahman

For Appellant: Shri Gaurav Jain andFor Respondent: Shri Balkishan Gopal, Senior DR
Section 194CSection 201Section 201(1)Section 201(3)

Ansal Housing Limited, New Delhi vs. Deputy Commissioner of Income Tax, Delhi

ITA 6794/DEL/2026[2014-15]Status: DisposedITAT Delhi18 Sept 2026AY 2014-15

Bench: Shri Mahavir Singh & Shri S. Rifaur Rahman

For Appellant: Shri Gaurav Jain andFor Respondent: Shri Balkishan Gopal, Senior DR
Section 194CSection 201Section 201(1)Section 201(3)

Jsd Steel Private Limited (Formerly Cbs Steel Private Limited), Delhi vs. Income Tax Officer Ward 75(1), Delhi

In the result, appeal of the assessee is partly allowed

ITA 8728/DEL/2025[2013-14]Status: DisposedITAT Delhi15 Jul 2026AY 2013-14

Bench: Shri Sudhir Kumar & Shri Manish Agarwal

For Appellant: AAACC7004P
Section 143(3)Section 201Section 201(1)Section 234ESection 250Section 40(1)(ia)

Income Tax Officer (TDS), Raipur vs. State Bank of India Regional Office Jagdalpur, Jagdalpur

In the result, the appeal of Revenue is dismissed being non-maintainable

ITA 454/RPR/2026[2012-13]Status: DisposedITAT Raipur08 Jul 2026AY 2012-13

Bench: Shri Partha Sarathi Chaudhury, Jm & Shri Avdhesh Kumar Mishra, Am आयकर अपील सं. / Ita No: 454/Rpr/2026 (िनधा"रण वष" Assessment Year: 2012-13) Income Tax Officer (Tds), Raipur, Vs State Bank Of India, Regional Office, Aaykar Bhawan, Civil Lines, Dharampura Road, Raipur-492001, Chhattisgarh. Opp. Gayatri Mandir, Jagdalpur -1 Pan: Jbps02288G (अपीलाथ"/Appellant) (""थ" / Respondent) : िनधा"रती की ओर से / Assessee By : None. (Adjournment Petition Filed) राज" की ओर से / Revenue By : Shri Piyush Tripathi, Sr. Dr सुनवाई की तारीख / Date Of Hearing : 06/07/2026 घोषणा की तारीख / Date Of : 08/07/2026 Pronouncement आदेश / O R D E R Per Avdhesh Kumar Mishra, Am: This Appeal For Assessment Year (‘Ay’) 2012-13 Filed By The Revenue Is Directed Against The Order Dated 31.03.2026 Of Additional/Joint Commissioner Of Income Tax (Appeals)-2, Siliguri [‘Addl./Joint Cit(A)] Passed Under Section 250 Of The Income Tax Act, 1961 (‘Act’).

For Appellant: None. (Adjournment petition filed)For Respondent: Shri Piyush Tripathi, Sr. DR
Section 10Section 10(5)Section 133ASection 192Section 201Section 201(1)Section 201(3)Section 250

Income Tax Officer, Mumbai vs. Syndicate Bank (Now Merged With Canara Bank), Mumbai

In the result, the appeal filed by the Revenue is dismissed

ITA 6763/MUM/2025[2012-13]Status: DisposedITAT Mumbai27 Apr 2026AY 2012-13

Bench: Smt. Beena Pillai & Shri Jagadishassessment Year: 2012-13

Section 12ASection 194ASection 194A(3)(iii)Section 201Section 201(1)Section 201(3)

Shiv Sai Infrastructure Pvt Ltd, Delhi vs. ITO Ward-77(2), Delhi

In the result, the appeal of the assessee is allowed

ITA 2703/DEL/2025[2014-15]Status: DisposedITAT Delhi30 Dec 2025AY 2014-15

Bench: Shri C. N. Prasad & Shri M. Balaganeshshiv Sai Infrastructure Pvt. Ltd, Vs. Ito (Tds), E-42, Greater Kailash, Part-Ii, Ward-77(2), New Delhi Delhi (Appellant) (Respondent) Pan: Dels29867F Assessee By : Shri Raj Kumar, Ca Shri Suraj Gupta, Adv Revenue By: Shri Rajesh Kumar Dhanesta, Sr Dr Date Of Hearing 26/11/2025 Date Of Pronouncement 30/12/2025

For Appellant: Shri Raj Kumar, CAFor Respondent: Shri Rajesh Kumar Dhanesta, Sr DR
Section 133ASection 194CSection 194C(1)Section 201Section 201(1)

State Bank of India, Smecc, Zonal Office, Kanpur vs. ACIT9TDS), Kanpur

In the result, both appeals of the assessee are allowed for statistical purposes

ITA 636/LKW/2024[1018-19]Status: DisposedITAT Lucknow29 Jul 2025AY 1018-19

Bench: Shri Kul Bharat & Shri Anadee Nath Misshraassessment Year: 2016-17 State Bank Of India V. Dcit (Tds) The Mall Road, Kanpur Nagar- 7/119, Radiance Town, 208001. Swaroop Nagar, Kanpur Nagar-208002. Pan:Knps02318B (Appellant) (Respondent) Assessment Year: 2018-19 State Bank Of India V. Addl. Cit (Tds) The Mall Road, Kanpur Nagar- 7/119, Radiance Town, 208001. Swaroop Nagar, Kanpur Nagar-208002. Pan: Knps02318B (Appellant) (Respondent) Appellant By: Shri R. K. Agarwal, Adv Respondent By: Shri Amit Kumar, Cit(Dr) Date Of Hearing: 21 07 2025 Date Of Pronouncement: 29 07 2025 O R D E R

For Appellant: Shri R. K. Agarwal, AdvFor Respondent: Shri Amit Kumar, CIT(DR)
Section 10(5)Section 201Section 201(1)Section 201(3)Section 271C

State Bank of India, Zonal Office, Kanpur vs. Dy. CIT (TDS), Kanpur

In the result, both appeals of the assessee are allowed for statistical purposes

ITA 635/LKW/2024[2016-17]Status: DisposedITAT Lucknow29 Jul 2025AY 2016-17

Bench: Shri Kul Bharat & Shri Anadee Nath Misshraassessment Year: 2016-17 State Bank Of India V. Dcit (Tds) The Mall Road, Kanpur Nagar- 7/119, Radiance Town, 208001. Swaroop Nagar, Kanpur Nagar-208002. Pan:Knps02318B (Appellant) (Respondent) Assessment Year: 2018-19 State Bank Of India V. Addl. Cit (Tds) The Mall Road, Kanpur Nagar- 7/119, Radiance Town, 208001. Swaroop Nagar, Kanpur Nagar-208002. Pan: Knps02318B (Appellant) (Respondent) Appellant By: Shri R. K. Agarwal, Adv Respondent By: Shri Amit Kumar, Cit(Dr) Date Of Hearing: 21 07 2025 Date Of Pronouncement: 29 07 2025 O R D E R

For Appellant: Shri R. K. Agarwal, AdvFor Respondent: Shri Amit Kumar, CIT(DR)
Section 10(5)Section 201Section 201(1)Section 201(3)Section 271C

ACIT, Delhi vs. M/S. Vodafone Essar Mobile Services Ltd., New Delhi

In the result, the appeal of the Revenue is allowed for

ITA 983/DEL/2015[2006-07 (F.Y.- 2005-06)]Status: DisposedITAT Mumbai22 May 2025

Bench: Shri Om Prakash Kant () & Shri Raj Kumar Chauhan ()

For Respondent: Mr. Ketan Ved
Section 194Section 201Section 201(1)

Assistant Commissioner of Income Tax, International Taxation vs. Allscripts (India) Private Limited, Vadodara

In the result, the appeal of the Revenue is dismissed

ITA 1373/AHD/2024[2014-15]Status: DisposedITAT Ahmedabad07 Feb 2025AY 2014-15

Bench: Smt.Annapurna Gupta & Shri T.R. Senthil Kumarassessment Year : 2014-15 Asstt.Cit (International Allscripts (India) Pvt. Ltd. Taxation),Vadodara. Vs 10Th & 11Th Floor, Atlantis Heights Dr. Vikram Sarabhai Road Vadodara. Pan : Aaccm 2641 J (Applicant) (Responent) : Assessee By Shri Rajpat Soni, Ar : Shri Amit Pratap Singh, Sr.Dr. Revenue By सुनवाई क" तारीख/Date Of Hearing : 08/01/2025 घोषणा क" तारीख /Date Of Pronouncement: 07/02/2025 आदेश/O R D E R आदेश आदेश आदेश

Section 195Section 201Section 201(1)Section 201(3)Section 250

M/S. Allsec Technologies Limited, Chennai vs. DCIT, Intl Tax -1(1, Chennai

In the result, the appeal stand dismissed

ITA 1512/CHNY/2023[2015-16]Status: DisposedITAT Chennai03 Dec 2024AY 2015-16

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm आयकरअपील सं./ Ita No.1512/Chny/2023 (िनधा)रणवष) / Assessment Year: 2015-16) M/S. Allsec Technologies Limited Dcit बनाम/ 46C, Velachery Main Road, Velacherry, International Taxation-1(1) Vs. Chennai-600 042. Chennai. "थायीलेखासं./जीआइआरसं./Pan/Gir No.Aacca-5106-G (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Shri Vikram Vijayaraghavan (Advocate)-Ld.Ar " थ"कीओरसे/ Respondent By : Ms. Kavitha (Addl.Cit) - Ld. Dr सुनवाईकीतारीख/Date Of Hearing : 20-11-2024 घोषणाकीतारीख /Date Of Pronouncement : 03-12-2024 आदेश / O R D E R

For Appellant: Shri Vikram Vijayaraghavan (Advocate)-Ld.ARFor Respondent: Ms. Kavitha (Addl.CIT) - Ld. DR
Section 143(3)Section 201Section 201(1)Section 201(3)Section 40Section 9(1)(i)

DCIT, Laxminagar vs. Turner General Entertainment Networks India Private Limited, Mahipalpur Delhi

In the result, assessee's appeal is partly

ITA 473/DEL/2024[2011-12]Status: DisposedITAT Delhi14 Nov 2024AY 2011-12

Bench: Sh. M. Balaganesh & Sh. Sudhir Kumarassessment Year: 2011-12 Dcit Vs Turner General Laxmi Nagar Entertainment Net Works New Delhi India Limited Mahipalpur Delhi Tan No. Deln08096E (Appellant) (Respondent)

Section 201Section 201(1)Section 201(3)Section 271CSection 3

Indoworth India Limited, Nagpur vs. ACIT(TDS), Circle 51(1), Nagpur

In the result, appeal filed by the assessee for A

ITA 4/NAG/2024[2013-14]Status: DisposedITAT Nagpur23 Sept 2024AY 2013-14

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri R.K. GaneriwalFor Respondent: Shri Abhay Y. Marathe
Section 201Section 201(1)Section 201(3)

M/S Indoworth India Limited, Nagpur vs. ACIT(TDS), Circle 51(1), Nagpur

In the result, appeal filed by the assessee for A

ITA 3/NAG/2024[2012-13]Status: DisposedITAT Nagpur23 Sept 2024AY 2012-13

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri R.K. GaneriwalFor Respondent: Shri Abhay Y. Marathe
Section 201Section 201(1)Section 201(3)

State Bank of India, Overseas Branch, 15/54B, Civil Lines, Kanpur vs. Dy. CIT(TDS), Kanpur

ITA 187/LKW/2022[2011-12]Status: DisposedITAT Lucknow09 Jul 2024AY 2011-12

Bench: Hon’Ble Shri G. D. Padmahshali & Shri Subhash Malguriaआयकर अपील सं. / Ita No.186/Lkw/2022 निर्धारण वर्ा / Assessment Year : 2011-12 State Bank Of India Zonal Office, The Mall Road, Kanpur, Up-208001 Tan: Knps02318B . . . . . . . अपीलार्थी / Appellant बिधम / V/S. Dy. Commissioner Of Income Tax, Tds, Kanpur . . . . . . . प्रत्यर्थी / Respondent & आयकर अपील सं. / Ita No.187/Lkw/2022 निर्धारण वर्ा / Assessment Year : 2011-12 State Bank Of India Overseas Branch, 15/54B, Civil Lines, Kanpur, Up-208001 Tan: Knps01627D . . . . . . . अपीलार्थी / Appellant बिधम / V/S. Dy. Commissioner Of Income Tax, Tds, Kanpur . . . . . . . प्रत्यर्थी / Respondent द्वधरध / Appearances Assessee By : None For The Assessee Revenue By : Mr Sk Sharma [‘Ld. Dr’] सुनवाई की तारीख / Date Of Conclusive Hearing : 09/07/2024 घोषणा की तारीख / Date Of Pronouncement : 09/07/2024 आदेश / Order Per G. D. Padmahshali, Am; These Twin Appeals Of The Assessee Are Assailed Against The Separate Din & Order No. Itba/Nfac/S/250/2022-23/1045081675(1) & 1045081558(1) Both Dt. 31/08/2022 Orders Passed U/S 250 Of The Income Tax Act [‘The Act’ In Short] By The National Faceless Appeal Centre, Delhi [‘Nfac’ In Short] Confirming The Order Dt. 21/03/2018 Passed U/S 201(1) & 201(1A) Of The Act By The Dy. Commissioner Of Income Tax Circle-51(1), Nagpur [‘Ao’ Hereinafter] Anent To Assessment Year 2011- 12 [‘Ay’ Hereinafter]

For Appellant: None for the AssesseeFor Respondent: Mr SK Sharma [‘Ld. DR’]
Section 201Section 201(1)Section 24Section 246A(1)(ha)Section 250

State Bank of India, Zonal Office, the Mall Road, Kanpur vs. Dy. CIT(TDS), Kanpur

ITA 186/LKW/2022[2011-12]Status: DisposedITAT Lucknow09 Jul 2024AY 2011-12

Bench: Hon’Ble Shri G. D. Padmahshali & Shri Subhash Malguriaआयकर अपील सं. / Ita No.186/Lkw/2022 निर्धारण वर्ा / Assessment Year : 2011-12 State Bank Of India Zonal Office, The Mall Road, Kanpur, Up-208001 Tan: Knps02318B . . . . . . . अपीलार्थी / Appellant बिधम / V/S. Dy. Commissioner Of Income Tax, Tds, Kanpur . . . . . . . प्रत्यर्थी / Respondent & आयकर अपील सं. / Ita No.187/Lkw/2022 निर्धारण वर्ा / Assessment Year : 2011-12 State Bank Of India Overseas Branch, 15/54B, Civil Lines, Kanpur, Up-208001 Tan: Knps01627D . . . . . . . अपीलार्थी / Appellant बिधम / V/S. Dy. Commissioner Of Income Tax, Tds, Kanpur . . . . . . . प्रत्यर्थी / Respondent द्वधरध / Appearances Assessee By : None For The Assessee Revenue By : Mr Sk Sharma [‘Ld. Dr’] सुनवाई की तारीख / Date Of Conclusive Hearing : 09/07/2024 घोषणा की तारीख / Date Of Pronouncement : 09/07/2024 आदेश / Order Per G. D. Padmahshali, Am; These Twin Appeals Of The Assessee Are Assailed Against The Separate Din & Order No. Itba/Nfac/S/250/2022-23/1045081675(1) & 1045081558(1) Both Dt. 31/08/2022 Orders Passed U/S 250 Of The Income Tax Act [‘The Act’ In Short] By The National Faceless Appeal Centre, Delhi [‘Nfac’ In Short] Confirming The Order Dt. 21/03/2018 Passed U/S 201(1) & 201(1A) Of The Act By The Dy. Commissioner Of Income Tax Circle-51(1), Nagpur [‘Ao’ Hereinafter] Anent To Assessment Year 2011- 12 [‘Ay’ Hereinafter]

For Appellant: None for the AssesseeFor Respondent: Mr SK Sharma [‘Ld. DR’]
Section 201Section 201(1)Section 24Section 246A(1)(ha)Section 250

Mahagun India Pvt Ltd, New Delhi vs. ACIT Circle-75(1), New Delhi

In the result, both the appeals of the assessee are allowed

ITA 998/DEL/2020[2011-12]Status: HeardITAT Delhi15 Dec 2023AY 2011-12

Bench: Us

Section 201Section 201(1)Section 201(3)Section 263

Mahagun Real Estate Pvt Ltd, New Delhi vs. ACIT Circle-75(1), New Delhi

In the result, both the appeals of the assessee are allowed

ITA 997/DEL/2020[2011-12]Status: HeardITAT Delhi15 Dec 2023AY 2011-12

Bench: Us

Section 201Section 201(1)Section 201(3)Section 263

Punjab National Bank, Ambala vs. ITO TDS, Karnal

Appeal of the assessee is allowed

ITA 2117/DEL/2023[2013-14]Status: HeardITAT Delhi06 Dec 2023AY 2013-14

Bench: Sh. N. K. Billaiya & Ms. Astha Chandraassessment Year: 2013-14 Punjab National Bank Vs. Ito Ambala, Haryana -134003 Tds Pan No.Aaacp01656G Karnal (Appellant) (Respondent) Appellant By Sh. Lalit Garg, Fca Respondent By Sh. Vivek Vardhan, Sr. Dr Date Of Hearing: 06/12/2023 Date Of Pronouncement: 06/12/2023 Order Per N. K. Billaiya, Am: This Appeal By The Assessee Is Preferred Against The Order Dated 26.05.2023 By Nfac, Delhi Pertaining To A.Y.2013-14. 2. The Grievance Of The Assessee Read As Under :- 1. That On The Facts & Circumstances Of The Case, The Order Passed By The Learned Commissioner Of Income Tax (Tds) Under Section 250 Of The Act Is Bad, Both In The Eye Of Law & On Facts As It Is Time Barred As Per Limitation Given Under Section 201(3).

Section 2Section 200Section 201Section 201(1)Section 201(3)Section 250

Bank of India, Nagpur vs. Deputy Commissioner of Income Tax, (TDS), Circle-1, Nagpur

In the result, the appeal is partly allowed for statistical purposes

ITA 277/NAG/2022[2012-2013]Status: DisposedITAT Nagpur28 Aug 2023AY 2012-2013

Bench: Shri R.S.Syal & Shri Partha Sarathi Chaudhuryassessment Year : 2012-13 Bank Of India, Dcit (Tds), Hingna Branch, Nagpur Zonal Office, Vs. Circle-1, 3Rd Floor, Csd Dept., Kingsways, Nagpur Nagpur – 440 001, Maharashtra Pan : Aaacb0472C Appellant Respondent

For Appellant: Shri Pratik Sadrani &For Respondent: Shri Sanjay Agrawal
Section 194ASection 200Section 201Section 201(1)Section 201(3)Section 201(3)(i)Section 250