https://www.taxtmi.com/caselaws?id=38077 Employer default in deducting tax at source arises when salary is paid and no deduction is made, and limitation for recovery runs from the financial year in which that default occurs. A later demand letter may initiate recovery proceedings, but it cannot extend the statutory period. On the stated facts, the default had occurred years earlier and the recovery action commenced by the 26 June 1965 letter was time-barred, so the proceedings were held barred by limitation in favour of the assessee. en-us Wed, 08 Feb 1978 00:00:00 +0530 Sat, 03 Apr 2010 10:36:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38077 Employer default in deducting tax at source arises when salary is paid and no deduction is made, and limitation for recovery runs from the financial year in which that default occurs. A later demand letter may initiate recovery proceedings, but it cannot extend the statutory period. On the stated facts, the default had occurred years earlier and the recovery action commenced by the 26 June 1965 letter was time-barred, so the proceedings were held barred by limitation in favour of the assessee. Case-Laws Income Tax Wed, 08 Feb 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38077