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)

DCIT(TDS), Circle_1(2), Mumbai vs. M/S. Future Enterprises Ltd., Mumbai

The appeal of the revenue stand dismissed

ITA 1703/MUM/2020[DCIT(TDS), CIRCLE-1(2), MUMBAI]Status: DisposedITAT Mumbai31 Jan 2022

Bench: Shri Amarjit Singh () & Shri Amarjit Singh () Dcit (Tds), Circle-1(2) M/S Future 8Th Floor, R. No. 813, Vs. Enterprises Limited (Earlier Known As Future Smt. K.G. Mittal Retail India Pvt. Ltd.) Ayurvedic Hospital Bldg Ground Floor, Charni Road W), Knowledge House, Off Mumbai – 400002 Jogeshwari Vikhroli Link Road, Shyam Nagar, Jogeshwari East, Mumbai 400 060

For Appellant: Shri Dinkle HariyaFor Respondent: Shri Achal Sharma
Section 194Section 194(1)Section 194CSection 194ISection 201Section 201(1)Section 201(3)

Aleo Manali Hydro Power Pvt. Ltd., Noida vs. ITO (TDS), Noida

In the result, appeal of the assessee is allowed

ITA 4673/DEL/2018[2010-11]Status: DisposedITAT Delhi03 Dec 2021AY 2010-11

Bench: Shri Anil Chaturvedi & Shri K. Narasimha Charyassessment Year: 2010-11

For Appellant: Shri Ved Jain, Advocate &For Respondent: Shri Ajay Kumar, Sr. DR
Section 115Section 194CSection 194ISection 200Section 201Section 201(1)Section 201(3)

Bank of India, Kirkee Branch, Pune vs. Income-Tax Officer, (TDS) -1, Pune

In the result, the appeal is allowed

ITA 893/PUN/2019[2010-11]Status: DisposedITAT Pune30 Jun 2021AY 2010-11

Bench: Shri R.S. Syal & Shri S.S. Viswanethra Raviआयकर अपीऱ सं. / Ita No.893/Pun/2019 निर्धारण वषा / Assessment Year : 2010-11 Bank Of India – Kirkee Branch Vs. Ito-Tds(1), Ganga Heights, Khadki Bazar, Pune Khadki, Pune – 411003 Pan: Aaacb0472C Appellant Respondent

Section 194ASection 200Section 201Section 201(1)Section 201(3)

Bank of India, Kirkee Branch, Pune vs. Income-Tax Officer, (TDS) -1, Pune

In the result, the appeals are allowed

ITA 892/PUN/2019[2009-10]Status: DisposedITAT Pune30 Jun 2021AY 2009-10

Bench: Shri R.S. Syal & Shri S.S. Viswanethra Raviआयकर अपीऱ सं. / Ita No.888/Pun/2019 निर्धारण वषा / Assessment Year : 2009-10 Bank Of India – Shukrawar Peth Vs. Dcit(Tds), Branch Pune 1412, Shewde Lane, Shukrawar Peth, Pune – 411002 Pan: Aaacb0472C Appellant Respondent आयकर अपीऱ सं. / Ita No.889/Pun/2019 निर्धारण वषा / Assessment Year : 2009-10 Bank Of India –Koregaon Park Branch Vs. Dcit(Tds), Ladkat Plaza, Koregaon Park, Pune Pune – 411001 Pan: Aaacb0472C Appellant Respondent आयकर अपीऱ सं. / Ita No.890/Pun/2019 निर्धारण वषा / Assessment Year : 2009-10 Bank Of India –Camp Branch Vs. Dcit(Tds), 8A Dr. Coyaji Road, Camp Pune Pune – 411001 Pan: Aaacb0472C Appellant Respondent आयकर अपीऱ सं. / Ita No.891/Pun/2019 निर्धारण वषा / Assessment Year : 2009-10 Bank Of India –Kothrud Branch Vs. Ito-Tds(1), 133/1, Behde Complex, Kothrud, Pune Pune – 411038 Pan: Aaacb0472C Appellant Respondent आयकर अपीऱ सं. / Ita No.892/Pun/2019 निर्धारण वषा / Assessment Year : 2009-10 Bank Of India – Kirkee Branch Vs. Ito-Tds(1), Ganga Heights, Khadki Bazar, Pune Khadki, Pune – 411003 Pan: Aaacb0472C Appellant Respondent

Section 194ASection 201Section 201(1)Section 201(3)

Bank of India, Kothrud Branch, Pune vs. Income-Tax Officer, TDS (1), Pune

In the result, the appeals are allowed

ITA 891/PUN/2019[2009-10]Status: DisposedITAT Pune30 Jun 2021AY 2009-10

Bench: Shri R.S. Syal & Shri S.S. Viswanethra Raviआयकर अपीऱ सं. / Ita No.888/Pun/2019 निर्धारण वषा / Assessment Year : 2009-10 Bank Of India – Shukrawar Peth Vs. Dcit(Tds), Branch Pune 1412, Shewde Lane, Shukrawar Peth, Pune – 411002 Pan: Aaacb0472C Appellant Respondent आयकर अपीऱ सं. / Ita No.889/Pun/2019 निर्धारण वषा / Assessment Year : 2009-10 Bank Of India –Koregaon Park Branch Vs. Dcit(Tds), Ladkat Plaza, Koregaon Park, Pune Pune – 411001 Pan: Aaacb0472C Appellant Respondent आयकर अपीऱ सं. / Ita No.890/Pun/2019 निर्धारण वषा / Assessment Year : 2009-10 Bank Of India –Camp Branch Vs. Dcit(Tds), 8A Dr. Coyaji Road, Camp Pune Pune – 411001 Pan: Aaacb0472C Appellant Respondent आयकर अपीऱ सं. / Ita No.891/Pun/2019 निर्धारण वषा / Assessment Year : 2009-10 Bank Of India –Kothrud Branch Vs. Ito-Tds(1), 133/1, Behde Complex, Kothrud, Pune Pune – 411038 Pan: Aaacb0472C Appellant Respondent आयकर अपीऱ सं. / Ita No.892/Pun/2019 निर्धारण वषा / Assessment Year : 2009-10 Bank Of India – Kirkee Branch Vs. Ito-Tds(1), Ganga Heights, Khadki Bazar, Pune Khadki, Pune – 411003 Pan: Aaacb0472C Appellant Respondent

Section 194ASection 201Section 201(1)Section 201(3)

Bank of India, Camp Branch, Pune vs. Deputy Commissioner of Income-Tax, (TDS), Pune

In the result, the appeals are allowed

ITA 890/PUN/2019[2009-10]Status: DisposedITAT Pune30 Jun 2021AY 2009-10

Bench: Shri R.S. Syal & Shri S.S. Viswanethra Raviआयकर अपीऱ सं. / Ita No.888/Pun/2019 निर्धारण वषा / Assessment Year : 2009-10 Bank Of India – Shukrawar Peth Vs. Dcit(Tds), Branch Pune 1412, Shewde Lane, Shukrawar Peth, Pune – 411002 Pan: Aaacb0472C Appellant Respondent आयकर अपीऱ सं. / Ita No.889/Pun/2019 निर्धारण वषा / Assessment Year : 2009-10 Bank Of India –Koregaon Park Branch Vs. Dcit(Tds), Ladkat Plaza, Koregaon Park, Pune Pune – 411001 Pan: Aaacb0472C Appellant Respondent आयकर अपीऱ सं. / Ita No.890/Pun/2019 निर्धारण वषा / Assessment Year : 2009-10 Bank Of India –Camp Branch Vs. Dcit(Tds), 8A Dr. Coyaji Road, Camp Pune Pune – 411001 Pan: Aaacb0472C Appellant Respondent आयकर अपीऱ सं. / Ita No.891/Pun/2019 निर्धारण वषा / Assessment Year : 2009-10 Bank Of India –Kothrud Branch Vs. Ito-Tds(1), 133/1, Behde Complex, Kothrud, Pune Pune – 411038 Pan: Aaacb0472C Appellant Respondent आयकर अपीऱ सं. / Ita No.892/Pun/2019 निर्धारण वषा / Assessment Year : 2009-10 Bank Of India – Kirkee Branch Vs. Ito-Tds(1), Ganga Heights, Khadki Bazar, Pune Khadki, Pune – 411003 Pan: Aaacb0472C Appellant Respondent

Section 194ASection 201Section 201(1)Section 201(3)

Bank of India, Koregaon Park Branch, Pune vs. Deputy Commissioner of Income-Tax, (TDS), Pune

In the result, the appeals are allowed

ITA 889/PUN/2019[2009-10]Status: DisposedITAT Pune30 Jun 2021AY 2009-10

Bench: Shri R.S. Syal & Shri S.S. Viswanethra Raviआयकर अपीऱ सं. / Ita No.888/Pun/2019 निर्धारण वषा / Assessment Year : 2009-10 Bank Of India – Shukrawar Peth Vs. Dcit(Tds), Branch Pune 1412, Shewde Lane, Shukrawar Peth, Pune – 411002 Pan: Aaacb0472C Appellant Respondent आयकर अपीऱ सं. / Ita No.889/Pun/2019 निर्धारण वषा / Assessment Year : 2009-10 Bank Of India –Koregaon Park Branch Vs. Dcit(Tds), Ladkat Plaza, Koregaon Park, Pune Pune – 411001 Pan: Aaacb0472C Appellant Respondent आयकर अपीऱ सं. / Ita No.890/Pun/2019 निर्धारण वषा / Assessment Year : 2009-10 Bank Of India –Camp Branch Vs. Dcit(Tds), 8A Dr. Coyaji Road, Camp Pune Pune – 411001 Pan: Aaacb0472C Appellant Respondent आयकर अपीऱ सं. / Ita No.891/Pun/2019 निर्धारण वषा / Assessment Year : 2009-10 Bank Of India –Kothrud Branch Vs. Ito-Tds(1), 133/1, Behde Complex, Kothrud, Pune Pune – 411038 Pan: Aaacb0472C Appellant Respondent आयकर अपीऱ सं. / Ita No.892/Pun/2019 निर्धारण वषा / Assessment Year : 2009-10 Bank Of India – Kirkee Branch Vs. Ito-Tds(1), Ganga Heights, Khadki Bazar, Pune Khadki, Pune – 411003 Pan: Aaacb0472C Appellant Respondent

Section 194ASection 201Section 201(1)Section 201(3)

Bank of India, Shukrawar Peth, Pune vs. Deputy Commissioner of Income-Tax, (TDS), Pune

In the result, the appeals are allowed

ITA 888/PUN/2019[2009-10]Status: DisposedITAT Pune30 Jun 2021AY 2009-10

Bench: Shri R.S. Syal & Shri S.S. Viswanethra Raviआयकर अपीऱ सं. / Ita No.888/Pun/2019 निर्धारण वषा / Assessment Year : 2009-10 Bank Of India – Shukrawar Peth Vs. Dcit(Tds), Branch Pune 1412, Shewde Lane, Shukrawar Peth, Pune – 411002 Pan: Aaacb0472C Appellant Respondent आयकर अपीऱ सं. / Ita No.889/Pun/2019 निर्धारण वषा / Assessment Year : 2009-10 Bank Of India –Koregaon Park Branch Vs. Dcit(Tds), Ladkat Plaza, Koregaon Park, Pune Pune – 411001 Pan: Aaacb0472C Appellant Respondent आयकर अपीऱ सं. / Ita No.890/Pun/2019 निर्धारण वषा / Assessment Year : 2009-10 Bank Of India –Camp Branch Vs. Dcit(Tds), 8A Dr. Coyaji Road, Camp Pune Pune – 411001 Pan: Aaacb0472C Appellant Respondent आयकर अपीऱ सं. / Ita No.891/Pun/2019 निर्धारण वषा / Assessment Year : 2009-10 Bank Of India –Kothrud Branch Vs. Ito-Tds(1), 133/1, Behde Complex, Kothrud, Pune Pune – 411038 Pan: Aaacb0472C Appellant Respondent आयकर अपीऱ सं. / Ita No.892/Pun/2019 निर्धारण वषा / Assessment Year : 2009-10 Bank Of India – Kirkee Branch Vs. Ito-Tds(1), Ganga Heights, Khadki Bazar, Pune Khadki, Pune – 411003 Pan: Aaacb0472C Appellant Respondent

Section 194ASection 201Section 201(1)Section 201(3)

State Bank of India - Cuffe Parade Branch, Mumbai vs. ACIT-TDS-3(2), Mumbai

In the result, the appeal is allowed in the terms indicated above

ITA 1717/MUM/2019[2012-13]Status: DisposedITAT Mumbai27 Jan 2021AY 2012-13
Section 10(5)Section 133ASection 201Section 201(1)Section 201(3)

M/S Hcl Technologies Ltd., Noida vs. ACIT (TDS), Noida

In the result appeal of assessee is allowed

ITA 1723/DEL/2017[2009-10]Status: DisposedITAT Delhi20 Jul 2020AY 2009-10

Bench: Shri Amit Shukla & Shri Prashant Maharishihcl Technologies Ltd, Acit(Tds), Plot No. 3A, Tower 6, 14Th Floor, Vs. Noida Sector-126, Noida Pan: Aaach1645P (Appellant) (Respondent)

For Appellant: Shri Neeraj Jain, AdvFor Respondent: Ms. Rakhi Vimal, Sr. DR
Section 194CSection 201Section 201(1)Section 40

Vodafone Idea Limited, Bhubaneswar vs. ACIT, TDS, Bhubaneswar

In the result, all four appeals of the assessee are allowed

ITA 306/CTK/2019[2009-10]Status: DisposedITAT Cuttack05 Jun 2020AY 2009-10

Bench: Shri Chandra Mohan Garg & Laxmi Prasad Sahu

For Appellant: Shri Salil Kapoor, Ms Soumya Singh & Nirod PatadeFor Respondent: Shri M.K.Gautam, CIT DR
Section 194HSection 194JSection 201(1)Section 201(3)

M/S Civitech Developers (P) Ltd., Delhi vs. ITO, New Delhi

In the result, appeal of the assessee is allowed

ITA 1964/DEL/2017[2011-12]Status: DisposedITAT Delhi30 Oct 2019AY 2011-12

Bench: Shri O.P.Kant & Shri K. Narasimha Chary

For Appellant: Shri Sanjay Kumar, FCAFor Respondent: Ms. Ashima Neb, Sr.DR
Section 154Section 194Section 200Section 201Section 201(1)Section 201(3)Section 201(3)(i)Section 201o

Deputy Commissioner of Income Tax, (TDS)- 2 (3), Mumbai vs. Vodafone India Limited, Mumbai

In the result, the appeals filed by the Revenue are dismissed

ITA 5612/MUM/2018[2000-01]Status: DisposedITAT Mumbai18 Sept 2019AY 2000-01

Bench: Shri C.N. Prasad () & Shri N.K. Pradhan () Assessment Year: 2000-01 & Assessment Year: 2001-02 & Assessment Year: 2002-03

For Appellant: Mr. Deepak Chopra, ARFor Respondent: Mr. Sushil Kumar Poddar, DR
Section 133ASection 194JSection 2Section 201(1)

Sutherland Global Services Private Limited, Chennai vs. DCIT International Taxation II(2), Chennai

In the result, all the three appeals filed by the assessee are allowed

ITA 1795/CHNY/2017[2010-11]Status: DisposedITAT Chennai06 Sept 2019AY 2010-11

Bench: Shri N.R.S. Ganesan & Shri S. Jayaramanआयकर अपील सं./Ita No.1795 & 1141/Chny/2017 "नधा"रण वष" /Assessment Years : 2010-11 & 2009-10 आयकर अपील सं./Ita No.1210/Chny/2016 "नधा"रण वष" /Assessment Year : 2008-09

For Appellant: Sh. Raghavan Ramabadran, AdvocateFor Respondent: Dr. S. Pandian, JCIT
Section 200Section 201Section 201(3)

Sutherland Global Services Private Limited, Chennai vs. DCIT, Chennai

In the result, all the three appeals filed by the assessee are allowed

ITA 1141/CHNY/2017[2009-10]Status: DisposedITAT Chennai06 Sept 2019AY 2009-10

Bench: Shri N.R.S. Ganesan & Shri S. Jayaramanआयकर अपील सं./Ita No.1795 & 1141/Chny/2017 "नधा"रण वष" /Assessment Years : 2010-11 & 2009-10 आयकर अपील सं./Ita No.1210/Chny/2016 "नधा"रण वष" /Assessment Year : 2008-09

For Appellant: Sh. Raghavan Ramabadran, AdvocateFor Respondent: Dr. S. Pandian, JCIT
Section 200Section 201Section 201(3)

Sutherland Global Services Private Limited, Chennai vs. ITO, Chennai

In the result, all the three appeals filed by the assessee are allowed

ITA 1210/CHNY/2016[2008-09]Status: DisposedITAT Chennai06 Sept 2019AY 2008-09

Bench: Shri N.R.S. Ganesan & Shri S. Jayaramanआयकर अपील सं./Ita No.1795 & 1141/Chny/2017 "नधा"रण वष" /Assessment Years : 2010-11 & 2009-10 आयकर अपील सं./Ita No.1210/Chny/2016 "नधा"रण वष" /Assessment Year : 2008-09

For Appellant: Sh. Raghavan Ramabadran, AdvocateFor Respondent: Dr. S. Pandian, JCIT
Section 200Section 201Section 201(3)

Income Tax Officers (TDS), Gandhinagar vs. Shri Rang Infrastructure Pvt. Ltd., Gandhinagar

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

ITA 2266/AHD/2017[2010-11]Status: DisposedITAT Ahmedabad04 Sept 2019AY 2010-11

Bench: Shri Pradip Kumar Kedia & Shri Mahavir Prasadआयकर अपील सं./I.T.A. No. 2266/Ahd/2017 ("नधा"रण वष" / Assessment Year: 2010-11)

For Appellant: Shri L. P. Jain, Sr. DR
Section 194Section 2(22)(e)Section 201Section 201(1)Section 201(3)

Bank of India, Pune City Branch, Pune vs. Deputy Commissioner of Income-Tax, TDS, Pune

In the result, the impugned orders are set aside and all the appeals are allowed for statistical purpose in the terms aforesaid

ITA 242/PUN/2019[2009-10]Status: DisposedITAT Pune25 Jul 2019AY 2009-10

Bench: Shri D. Karunakara Rao, Am & Shri Vikas Awasthy, Jm

Bank of India, Dashbhuja Ganpati Branch, Pune vs. Deputy Commissioner of Income-Tax, TDS, Pune

In the result, the impugned orders are set aside and all the appeals are allowed for statistical purpose in the terms aforesaid

ITA 241/PUN/2019[2009-10]Status: DisposedITAT Pune25 Jul 2019AY 2009-10

Bench: Shri D. Karunakara Rao, Am & Shri Vikas Awasthy, Jm

Bank of India, Tilak Road Branch, Pune vs. Deputy Commissioner of Income-Tax, T D S, Pune

In the result, the impugned orders are set aside and all the appeals are allowed for statistical purpose in the terms aforesaid

ITA 240/PUN/2019[2009-10]Status: DisposedITAT Pune25 Jul 2019AY 2009-10

Bench: Shri D. Karunakara Rao, Am & Shri Vikas Awasthy, Jm