TaxTMI 
TaxTMI 
2016 (2) TMI 629
X X X X Extracts X X X X
X X X X Extracts X X X X
....he circumstances of the case as well as in law, the ld. CIT(A) has erred in (a) Deleting the demand raised u/s 201(1) on account of non-deduction of tax at source u/s 194H on non-cash payment to dealers treating the same as incentives and discounts. (b) in holding that the initiation of proceedings u/s 201 of the IT Act against the assessee in respect of FY 2001-02 was barred by limitation having been initiated beyond a reasonable period of time of four years." 3. We have heard argument of both the sides and carefully perused the relevant material placed on record before us, inter alia, impugned assessment order, first appellate order paper book of the assessee separate over 124 pages and copies of the decisions/ orders....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed limit and in the present case order has been passed beyond 4 years and if the AO (TDS) is not taking any action within a reasonable time of 4 years from the end of relevant financial year then he should not open such old cases, where the assessee - company cannot get records/ information from the deductee/companies due to non-availibility of such old record. 5. The ld. DR also placed rejoinder to the above noted contentions of the Ld. AR on behalf of the revenue and she submitted that notice was issued to the assessee on 9.2.2011 for AY 2002-03 and no limitation has been fixed by the Act for initiation of proceedings u/s 201(1)/201(1A) of the Act. The Ld. DR pointed out that it is by the courts who have laid down 4 years and 6 years l....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o recent decision of DHC in the case of Jaya Drinks(P) Ltd. , the sect ion 144-H on TDS on brokerage/Commission paid to agent for services on selling/buying goods for Principal company is not applicable here. TDS is like other advance tax provisions, for collect ion of tax from assesses in advance. If the AO(TDS) is not taking action within a reasonable time limit of four years, from the end of FY then the he should not reopen such old cases, where assessee company cannot get records/ information from deductee companies, due to non-availability of such old records. The department should increase computerization process of TDS provisions so that AO (TDS) can verify from PAN of deductee companies, whether such payments and correspond....
X X X X Extracts X X X X
X X X X Extracts X X X X
....in the case of NHK Japan(Supra) their lordship held as follows :- "4. We have examined the impugned decision as well as the decision of this Court in the case of NHK Japan Broadcasting Corporation (supra), wherein it has been clearly indicated that although no specific period of limitation has been prescribed or indicated under Section 201 and 201(A), a reasonable time limit has to be adopted. In that context, it examined the provisions of Section 153(1)(a) and came to the conclusion :- "18. In so far as the Income-tax Act is concerned, our attention has been drawn to section 153(1)(a) thereof which prescribes the time limit for completing the assesement, which is two year from the end of the assessment year in which the i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....37; 11SCC 363 action must be initiated by the competent authority under the Income-tax Act, where no limitation is prescribed as in section 201 of the Act within that period of four years." (underlining added) 5. From the above, it is clear that the proceedings under Section 201/ 201(A) of the Income Tax Act, 1961 can be initiated only within three years from the end of the Assessment Year or within four years from the end of the relevant Financial Year. 6. In the present case, we are concerned with the Financial Year 2001-02 or the Assessment Year 2002-03. The proceedings under Sections 201/ 201(A) were admittedly initiated beyond the period of three years from the end of the relevant Assessment Year as also beyond the pe....