No statutory limitation for section 201(1A) interest orders where TDS was remitted late, so delay did not invalidate the levy.

Where tax deducted at source was remitted late, the Tribunal held that an order levying interest under section 201(1A) for assessment years 2003-04 and 2004-05 was not barred by limitation. It noted that, for the relevant period, the Income-tax Act did not prescribe a statutory time limit for passing such an order, and declined to treat the later introduction of section 201(3) as retrospective. Applying the binding jurisdictional High Court view, it held that delay alone could not invalidate the interest order and sustained the levy against the assessee.

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Issues: Whether the order levying interest under section 201(1A) of the Income-tax Act, 1961 was barred by limitation for assessment years 2003-04 and 2004-05.

Analysis: The assessee had deducted tax at source but remitted it belatedly. The Tribunal noted that prior to 1.4.2010 there was no statutory time limit for passing an order under section 201(1A). It rejected the contention that the amendment introducing section 201(3) could be treated as retrospective. Relying on the binding jurisdictional High Court decision, the Tribunal held that where no limitation is prescribed under the statute for the relevant period, the order cannot be invalidated merely on the ground of delay. The Tribunal therefore declined to import a limitation period and upheld the levy of interest.

Conclusion: The order under section 201(1A) was not time-barred and the levy of interest was sustained against the assessee.

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