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)

Vodafone Spacetel Limited, Bhubaneswar vs. ACIT(TDS-1), Bhubaneswar

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

ITA 308/CTK/2014[2012-13]Status: DisposedITAT Cuttack11 Aug 2017AY 2012-13

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

Vodafone Spacetel Limited, Bhubaneswar vs. ACIT(TDS-1), Bhubaneswar

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

ITA 307/CTK/2014[2011-12]Status: DisposedITAT Cuttack11 Aug 2017AY 2011-12

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

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

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

ITA 3/CTK/2014[2009-10]Status: DisposedITAT Cuttack11 Aug 2017AY 2009-10

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

ITO(TDS), Moradabad vs. M/S. Executive Engineer, Raebareilly

The appeals of the department are dismissed

ITA 4102/DEL/2014[2008-09]Status: DisposedITAT Delhi06 Apr 2017AY 2008-09

Bench: Shri N.K. Saini & Shri Sudhanshu Srivastavaay: 2008-09 Ay: 2008-09

For Appellant: Shri Anil Kumar Sharma, Sr. DRFor Respondent: None
Section 201Section 201(1)Section 201(3)

DCIT (It) 2(2)(1), Mumbai vs. Ingram Micro India Ltd, Mumbai

ITA 1385/MUM/2015[2008-09]Status: DisposedITAT Mumbai06 Jan 2017AY 2008-09

Bench: S/Shri Rajendra & C.N. Prasadआयकर आयकर आयकर अपील आयकर अपील अपील संसंसंसं/ Ita No.1385 & 1386/Mum/2015:िनधा"रण अपील वष"/Assessment Year-2008-09 िनधा"रण वष" िनधा"रण िनधा"रण वष" वष" Dcit(It)-2(2)(1), M/S. Ingram Micro India Limited, Godrej I.T. Park, B-Block, 5Th Floor, Mumbai. Vs. Pirojshahnagar, Lbs Road, Vikhroli (West), Mumbai – 79 Pan : Aabct 1296 R (Appellant) (Respondent) ""या ""या ""या"े"े"े"ेप /Co.No.169 & 170/Mum/2015:िनधा"रण ""या वष"/Assessment Year-2008-09 िनधा"रण वष" िनधा"रण िनधा"रण वष" वष" M/S. Ingram Micro India Limited, Vs. Dcit(It)-2(2)(1), Vikhroli (West), Mumbai – 79 Mumbai. (Appellant) (Respondent) Revenue By: Shri K. Mohandas - Dr Assessee By: Shri P.B. Chhapgar – Ca सुनवाई क" तारीख / Date Of Hearing: 25/10/2016 घोषणा क" तारीख / Date Of Pronouncement: 06/01/2017 आयकर आयकर अिधिनयम आयकर आयकर अिधिनयम अिधिनयम,1961 अिधिनयम 1961 1961 क" धारा 1961 क" धारा क" धारा 254 क" धारा 254 254(1)के अ"तग"त आदेश 254 के अ"तग"त आदेश के अ"तग"त आदेश के अ"तग"त आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा सद"य लेखा सद"य, राजे"" लेखा सद"य लेखा सद"य राजे"" राजे"" के अनुसार राजे"" के अनुसार के अनुसार/ Per Rajendra A.M.- के अनुसार Challenging The Orders Dated 30/10/2014 Of The Cit(A)-10, Mumbai, The Assessing Officer (Ao)And The Assessee Have Filed The Above Appeals/Cross Objections (Co.S).

For Appellant: Shri P.B. Chhapgar – CAFor Respondent: Shri K. Mohandas - DR
Section 133ASection 201Section 254(1)Section 9(1)(vii)

Wipro Limited, Bangalore vs. DCIT, Bangalore

In the result, the appeal filed by the assessee-company is allowed

ITA 352/BANG/2012[2003-04]Status: DisposedITAT Bangalore29 Apr 2016AY 2003-04

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Raom/S.Wipro Ltd., Doddakanneli, Sarjapur Road, Bangalore. … Appellant Pan: Aaacw 0387 R Vs Deputy Commissioner Of Income-Tax (Tds) Circle 18(2), Bangalore. … Respondent

For Appellant: Shri B.K.Manjunath, CAFor Respondent: Shri Sunil Kumar Agarwala, JCIT(DR)
Section 194Section 194HSection 201

M/S National Highways Authority of India, Siliguri vs. ACIT, (TDS), Siliguri

In the result, all the appeals of assessee are allowed

ITA 31/KOL/2016[2008-09]Status: DisposedITAT Kolkata09 Mar 2016AY 2008-09

Bench: Shri Mahavir Singh & Shri Waseem Ahmed

Section 201Section 201(1)

DCIT, New Delhi vs. M/S. Catholic Relief Services, New Delhi

In the result, appeal of the revenue is dismissed

ITA 506/DEL/2014[2002-03]Status: DisposedITAT Delhi10 Feb 2016AY 2002-03

Bench: Sri C.M.Garg, Jm & Sri O.P. Kant, Am Ita No. 506/Del./2014 : Asstt. Year : 2002-03

For Appellant: Dr. Ram Sameyh, AdvFor Respondent: Ms. Rakhi Vimal, Sr. DR
Section 201Section 201(1)Section 201(3)

Wunderman India P.Ltd, Mumbai vs. ITO (TDS) 3(5), Mumbai

In the result, assessee’s appeal is allowed for statistical purposes

ITA 4675/MUM/2014[2007-08]Status: DisposedITAT Mumbai29 Jan 2016AY 2007-08

Bench: Shri Saktijit Dey & Shri Ashwani Taneja

For Appellant: Shri Jitendra JainFor Respondent: Shri Nitin Waghmode
Section 201Section 201(3)

Tril Infopark Limited, Chennai vs. ITO, Chennai

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

ITA 699/CHNY/2014[2009-10]Status: DisposedITAT Chennai19 Jun 2015AY 2009-10

Bench: Shri N.R.S. Ganesan & Shri A. Mohan Alankamonyआयकर अपील सं./Ita No.699/Mds/2014 "नधा"रण वष" / Assessment Year : 2009-10

For Appellant: Sh. R. VijayaraghavanFor Respondent: Dr. S. Moharana, CIT
Section 200Section 201Section 201(1)Section 201(3)

Commissioner of Income Tax-TDS

The appeal is dismissed

ITA/85/2015HC Delhi11 Feb 2015
Section 201Section 201(3)