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)

Deputy Director of Income-Tax vs. Sandvik Asia Private Ltd., Pune

In the result, the appeals of the Revenue are dismissed and the appeals of the assessee are partly allowed

ITA 1570/PUN/2014[2007-08]Status: DisposedITAT Pune11 Jan 2019AY 2007-08

Bench: Shri D. Karunakara Rao, Am & Shri Partha Sarathi Chaudhury, Jm आयकर अपील सं. / Ita No.1515/Pun/2014 िनधा"रण वष" / Assessment Year : 2007-08 Sandvik Asia Private Limited, Mumbai – Pune Road, Dapodi, Pune. .......अपीलाथ" / Appellant Pan : Aaccs6638K बनाम / V/S. Ddit, International Taxation – Ii, ……""यथ" / Respondent Pune. आयकर अपील सं. / Ita No.1570/Pun/2014 िनधा"रण वष" / Assessment Year : 2007-08 Ddit, International Taxation – Ii, .......अपीलाथ" / Appellant Pune. बनाम / V/S. Sandvik Asia Private Limited, Mumbai – Pune Road, Dapodi, Pune. ……""यथ" / Respondent Pan : Aaccs6638K आयकर अपील सं. / Ita No.50/Pun/2014 िनधा"रण वष" / Assessment Year : 2008-09 Ddit, International Taxation – Ii, .......अपीलाथ" / Appellant Pune. बनाम / V/S. Sandvik Asia Private Limited, Mumbai – Pune Road, Dapodi, Pune. ……""यथ" / Respondent Pan : Aaccs6638K

For Appellant: Shri Nikhil PathakFor Respondent: Shri Sudhandu Das
Section 201Section 201(1)

Sandvik Asia Private Limited, Pune vs. Deputy Director of Income-Tax

In the result, the appeals of the Revenue are dismissed and the appeals of the assessee are partly allowed

ITA 1515/PUN/2014[2007-08]Status: DisposedITAT Pune11 Jan 2019AY 2007-08

Bench: Shri D. Karunakara Rao, Am & Shri Partha Sarathi Chaudhury, Jm आयकर अपील सं. / Ita No.1515/Pun/2014 िनधा"रण वष" / Assessment Year : 2007-08 Sandvik Asia Private Limited, Mumbai – Pune Road, Dapodi, Pune. .......अपीलाथ" / Appellant Pan : Aaccs6638K बनाम / V/S. Ddit, International Taxation – Ii, ……""यथ" / Respondent Pune. आयकर अपील सं. / Ita No.1570/Pun/2014 िनधा"रण वष" / Assessment Year : 2007-08 Ddit, International Taxation – Ii, .......अपीलाथ" / Appellant Pune. बनाम / V/S. Sandvik Asia Private Limited, Mumbai – Pune Road, Dapodi, Pune. ……""यथ" / Respondent Pan : Aaccs6638K आयकर अपील सं. / Ita No.50/Pun/2014 िनधा"रण वष" / Assessment Year : 2008-09 Ddit, International Taxation – Ii, .......अपीलाथ" / Appellant Pune. बनाम / V/S. Sandvik Asia Private Limited, Mumbai – Pune Road, Dapodi, Pune. ……""यथ" / Respondent Pan : Aaccs6638K

For Appellant: Shri Nikhil PathakFor Respondent: Shri Sudhandu Das
Section 201Section 201(1)

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

In the result, appeals filed by the Revenue are allowed for statistical purposes

ITA 982/DEL/2015[2005-06 (F.Y. 2004-05)]Status: DisposedITAT Delhi21 Aug 2018

Bench: Shri Raj Pal Yadav & Shri N.K. Billaiya

For Appellant: Sh. Sparsh Bhargava, Adv. &For Respondent: Smt. Anchal Khandelwal, Sr. DR
Section 194HSection 201Section 201(3)

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

In the result, appeals filed by the Revenue are allowed for statistical purposes

ITA 981/DEL/2015[2004-05 (F.Y. 2003-04)]Status: DisposedITAT Delhi21 Aug 2018

Bench: Shri Raj Pal Yadav & Shri N.K. Billaiya

For Appellant: Sh. Sparsh Bhargava, Adv. &For Respondent: Smt. Anchal Khandelwal, Sr. DR
Section 194HSection 201Section 201(3)

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

In the result, appeals filed by the Revenue are allowed for statistical purposes

ITA 980/DEL/2015[2003-04 (F.Y. 2002-03)]Status: DisposedITAT Delhi21 Aug 2018

Bench: Shri Raj Pal Yadav & Shri N.K. Billaiya

For Appellant: Sh. Sparsh Bhargava, Adv. &For Respondent: Smt. Anchal Khandelwal, Sr. DR
Section 194HSection 201Section 201(3)

Aarambh Advertising & Marketing Ltd., Kolkata vs. ITO, WD-57(1), Kolkata

In the result, the appeals of the assessee are dismissed

ITA 937/KOL/2015[2004-2005]Status: DisposedITAT Kolkata06 Jul 2018AY 2004-2005

Bench: Hon’Ble Shri M.Balaganesh, Am & Hon’Ble Shri S.S.Viswanethra Ravi, Jm] I.T.A Nos. 936 & 937/Kol/2015 Assessment Years : 2003-04 & 2004-05 Aarambh Advertising & Marketing Ltd. -Vs- Ito(Tds), Wd-57(1), Kolkata [Pan: Aaeca 7340 B] (Appellant) (Respondent)

For Appellant: Shri G. Banerjee, AdvocateFor Respondent: Shri A. Bhattacharjee, Addl. CIT
Section 201Section 201(1)Section 201(3)

Aarambh Advertising & Marketing Ltd., Kolkata vs. ITO (TDS) WD-57(1), Kolkata

In the result, the appeals of the assessee are dismissed

ITA 936/KOL/2015[2003-2004]Status: DisposedITAT Kolkata06 Jul 2018AY 2003-2004

Bench: Hon’Ble Shri M.Balaganesh, Am & Hon’Ble Shri S.S.Viswanethra Ravi, Jm] I.T.A Nos. 936 & 937/Kol/2015 Assessment Years : 2003-04 & 2004-05 Aarambh Advertising & Marketing Ltd. -Vs- Ito(Tds), Wd-57(1), Kolkata [Pan: Aaeca 7340 B] (Appellant) (Respondent)

For Appellant: Shri G. Banerjee, AdvocateFor Respondent: Shri A. Bhattacharjee, Addl. CIT
Section 201Section 201(1)Section 201(3)

Tech Mahindra Ltd. (Ca Satyam Asp Pvt. Ltd. Since Merged With Tech Mahindra Ltd.), Mumbai vs. ITO (International Taxation) - 1, Mumbai

In the result, assessee’s appeal is allowed only on the ground of limitation

ITA 5283/MUM/2016[2008-09]Status: DisposedITAT Mumbai22 Jun 2018AY 2008-09

Bench: Shri Saktijit Dey & Shri N.K Pradhantech Mahindra Limited (Ca Satyam Asp Pvt. Ltd. Since Merged With Tech Mahindra Limited) ……………. Appellant Gateway Building, Apollo Bunder Mumbai 400 001 Pan – Aaacm3484F V/S Income Tax Officer ……………. Respondent I.T. Circle–1, Mumbai Assessee By : Shri Karthik Natrajan Revenue By : Shri M.V. Raj Guru

For Appellant: Shri Karthik NatrajanFor Respondent: Shri M.V. Raj Guru
Section 195Section 201Section 201(1)Section 201(3)

The Railway Employee'S Co-Operative Bank Ltd., Ajmer vs. Income Tax Officer, TDS, Ajmer

In the result, appeal of the assessee is allowed

ITA 221/JPR/2018[2009-10]Status: DisposedITAT Jaipur19 Jun 2018AY 2009-10
For Appellant: Shri Vinod Gangwal (CA)For Respondent: Smt. Poonam Rai (DCIT)
Section 194ASection 197Section 201Section 80P

Ramdas Trading Company, Alwar vs. Income Tax Officer-TDS, Alwar

In the result, appeal of the assessee is allowed for statistical purposes

ITA 746/JPR/2017[2008-09]Status: DisposedITAT Jaipur17 May 2018AY 2008-09
For Appellant: Shri Shravan Kr. Gupta (Adv)For Respondent: Shri J.C. Kulhari (Addl.CIT)
Section 201Section 201(1)Section 201(3)Section 206C

M/S.Us Technology Resources P. Ltd, Trivandrum vs. The ACIT(International Taxation), Trivandrum

In the result, the appeal of the assessee is allowed and the Stay Petition filed

ITA 122/COCH/2017[2007-08]Status: DisposedITAT Cochin09 Apr 2018AY 2007-08

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 195Section 201Section 201(1)Section 40

Sodexo Svc India Private Limited, Mumbai vs. Deputy Commissioner of Income Tax (TDS)-2(2), Mumbai

In the result, assessee’s appeal is partly allowed

ITA 980/MUM/2018[2012-13]Status: DisposedITAT Mumbai28 Mar 2018AY 2012-13

Bench: Shri Saktijit Dey & Shri N.K. Pradhan

For Appellant: Shri J.D. Mistry, Sr. CounselFor Respondent: Shri R. Manjunatha Swamy
Section 133ASection 194CSection 201Section 201(1)Section 201(3)Section 206A

ITO (TDS) 3 (4), Mumbai vs. Vodafone Essar Ltd, Mumbai

In the result, (a) appeals filed by the assessee for assessment years 2000-01, 2001-02,

ITA 4808/MUM/2013[2007-08]Status: DisposedITAT Mumbai12 Mar 2018AY 2007-08

Bench: Shri B.R. Baskaran (Am) & Shri Ram Lal Negi (Jm)

For Appellant: Bajpai (AR)For Respondent: Yadav (DR)
Section 133ASection 201Section 201(1)

ITO (OSD) (TDS) 3(1), Mumbai vs. Vodafone Essar Ltd ( Now Known As Vodafone India Ltd), Mumbai

In the result, (a) appeals filed by the assessee for assessment years 2000-01, 2001-02,

ITA 5293/MUM/2012[2000-01]Status: DisposedITAT Mumbai12 Mar 2018AY 2000-01

Bench: Shri B.R. Baskaran (Am) & Shri Ram Lal Negi (Jm)

For Appellant: Bajpai (AR)For Respondent: Yadav (DR)
Section 133ASection 201Section 201(1)

ITO (OSD) (TDS) 3(1), Mumbai vs. Vodafone Essar Ltd ( Now Known As Vodafone India Ltd), Mumbai

In the result, (a) appeals filed by the assessee for assessment years 2000-01, 2001-02,

ITA 4638/MUM/2012[2001-02]Status: DisposedITAT Mumbai12 Mar 2018AY 2001-02

Bench: Shri B.R. Baskaran (Am) & Shri Ram Lal Negi (Jm)

For Appellant: Bajpai (AR)For Respondent: Yadav (DR)
Section 133ASection 201Section 201(1)

Vodafone India Ltd. (Formerly Known As Vodafone Essar Ltd.), Mumbai vs. I.T.O. (OSD) (TDS) RG. 3(1), Mumbai

In the result, (a) appeals filed by the assessee for assessment years 2000-01, 2001-02,

ITA 4511/MUM/2012[2000-2001]Status: DisposedITAT Mumbai12 Mar 2018AY 2000-2001

Bench: Shri B.R. Baskaran (Am) & Shri Ram Lal Negi (Jm)

For Appellant: Bajpai (AR)For Respondent: Yadav (DR)
Section 133ASection 201Section 201(1)

Vodafone Mobile Services Ltd., New Delhi vs. ACIT, New Delhi

In the result, these appeals are allowed for statistical purposes

ITA 409/DEL/2015[2004-05 (F.Y. 2003-04)]Status: DisposedITAT Delhi15 Dec 2017

Bench: Sh. N.K.Saini & Sh.K.N.Charyvs Vodafone Mobile Services Ltd. Assistant (Earlier Known As Vodafone Commissioner Of Essar Mobile Services Ltd), Income Tax, Circle Office: C-48, Okhla Circle 51(1) New Delhi Industrial Area, Phase-Ii New Delhi Pan:Aaacs4457Q (Appellant) (Respondent) Vs Vodafone Mobile Services Ltd. Assistant (Earlier Known As Vodafone Commissioner Of Essar Mobile Services Ltd), Income Tax, Circle Office: C-48, Okhla Circle 51(1) New Delhi Industrial Area, Phase-Ii New Delhi

Section 194HSection 201Section 201(3)

ITO (TDS), Moradabad vs. M/S. Canra Bank, Moradabad

In the result, the appeal of the department is dismissed

ITA 3992/DEL/2013[2006-07]Status: DisposedITAT Delhi31 Oct 2017AY 2006-07

Bench: Shri G.D. Agrawal, Hon’Ble & Shri Sudhanshu Srivastava

For Appellant: Shri F.R. Meena, Sr. DRFor Respondent: Shri Umesh Singh, Sr. Manager
Section 201(1)Section 201(3)

M/S. Hamir Real Estate Pvt. Ltd., Delhi vs. ITO (TDS), New Delhi

In the result, appeal of the assessee is allowed

ITA 5799/DEL/2015[2009-10 (F.Y. 2008-09)]Status: DisposedITAT Delhi18 Sept 2017

Bench: Shri G. D. Agrawal & Shri Amit Shukla

For Respondent: Shri S.S. Rana,CIT (D.R.)
Section 201Section 201(3)

Vodafone Spacetal Ltd, Bhubaneswar vs. ACIT(TDS), Bhubaneswar

In the result, ITA No.307/CTK/2014, ITA No

ITA 4/CTK/2014[2010-11]Status: DisposedITAT Cuttack11 Aug 2017AY 2010-11

Bench: Shri N.S.Saini, Am & Shri Pavan Kumar Gadale, Jm आयकर अपील सं./Ita No.03, 04, 307 & 308/Ctk/2014 ("नधा"रण वष" / Assessment Years :2009-10, 2010-11, 2011-12 & 2012-13) Vodafone Spacetel Limited, Vs. Acit (Tds), Unit-41, E-52, Infocity, Bhubaneswar Chandrasekharpur, Chandaka Industrial Estate, Bhubaneswar- 751024 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aabce 2207 R (अपीलाथ" /Appellant) (""यथ" / Respondent) .. "नधा"रती क" ओर से /Assessee By : Shri Sparsh Bhargava, Ar राज"व क" ओर से /Revenue By : Shri A.K.Mohapatra, Cit Dr सुनवाई क" तार"ख / Date Of Hearing : 08/08/2017 घोषणा क" तार"ख/Date Of Pronouncement 11/08/2017 आदेश / O R D E R Per Shri Pavan Kumar Gadale, Jm: The Assessee Has Filed These Appeals Against The Different Orders Of Cit(A)-I, Bhubaneswar For The Assessment Years 2009-10, 2010-11, 2011-12 & 2012-13. Since The Issues Are Common In All The Appeals, Therefore, They Are Clubbed Together, Heard & Disposed Off By This Consolidated Order. For The Sake Of Convenience, We Take Up Assessee’S Appeal I.E. Ita No.307/Ctk/2014 For The Assessment Year 2011-12 & Facts Narrated Therein. 2. Brief Facts Of The Case Are That The Assessee Company Is In The Business Of Providing Telecommunication Services In Various Parts Of India. There Was Survey Operation U/S.133A Of The Act In The Premises Of The Assessee On 29.9.2011 & Revenue Found Violation Of Provisions Of Tds & Ita Nos.307 & 308/14 In Non-Deducting Tds In Respect Of Payments Dealt In The Financial Year

For Appellant: Shri Sparsh Bhargava, ARFor Respondent: Shri A.K.Mohapatra, CIT DR
Section 133ASection 194Section 194HSection 194J