TaxTMI 
TaxTMI 
TaxTMI 
2020 (2) TMI 26
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.... the plea of the Assessee that the proceedings initiated u/s.201(1) & 201(1A) of the Act by the show cause notice dated 26.2.2015 were barred by time as laid down in Sec.201(3) of the Act. The Assessee also took a plea that it was not liable to deduct tax at source on provision made for expenses and Police Bandobast charges. The stand was rejected by the AO and he treated the Assessee as an Assessee in default and determined tax liability and interest u/s.201(1) & 201(1A) of the Act as follows:- Particulars Section Amount (Rs.) TDS Deductible u/s Sec 201(1) (Rs.) Total Interest u/s 201(1A) (Rs.) Total Demand (Rs.) Contracts, Maintenance, Advertisement etc. 194C 39614744 787479 31850 819329 Police Bandobast Charges 194C 5300000 1060000 1245500 2305500 Payments to the Professionals 194J 8342415 834242 56502 890744 Total 53257159 2681721 1333852 4015573 Total sum payable by the assessee : Rs. 26,81,721 Add: Interest u/s 201 (1A) : Rs. 13,33,852 Total : Rs. 40,15,543 Less: Paid : Rs. 16,21,721 Balance Payable : Rs. 23,93,852 4. The order of the AO was confirmed by the CIT(A) against which the Assessee....
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....verned by the provisions of Sec.201(3) prior to the aforesaid substitution. The learned DR reiterated the stand of the revenue that the substituted provisions of the law would apply. He also submitted that provisions of Sec.201(3)(i) of the provisions prior to substitution will not apply as the return of TDS filed by the Assessee was not within time and therefore had to be treated as non est in law. 13. As far as the question, whether section 201(3) as amended by Finance Act (No.2) 2014 would be applicable retrospectively or not, the Hon'ble Gujarat High Court in the case of TATA teleservices Vs. Union of India and Special Civil Application Nos. 1623, 2115 and 4771 of 2015 Judgement dated 16/02/2016, relating to Assessment Year 2008-09 took the view that section 201(3), as amended by Finance Act No.2 of 2014 shall not be applicable retrospectively and therefore, no order under section 201(i) of the Act can be passed for which limitation had already expired prior to amended section 201(3) as amended by Finance Act No.2 of 2014. The facts of the case before the Hon'ble Gujarat High Court was that the petitioner is engaged in the business of providing tele-communication services and....
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.... Gadgil versus Lal and Co., [1964-53 ITR 231 = AIR 1965 SC 171. Considering the law laid down by the Hon'ble Supreme Court in the aforesaid decisions, the Hon'ble Gujarat High Court held that the facts of the case before it and more particularly considering the fact that while amending section 201 by Finance Act, 2014, it has been specifically mentioned that the same shall be applicable w.e.f. 1/10/2014 and even considering the fact that proceedings for F.Y. 2007-08 and 2008-09 had become time barred and/or for the aforesaid financial years, limitation under section 201(3)(i) of the Act had already expired on 31/3/2011 and 31/3/2012, respectively, much prior to the amendment in section 201 as amended by Finance Act, 2014 and therefore, as such a right has been accrued in favour of the assessee and considering the fact that wherever legislature wanted to give retrospective effect so specifically provided while amending section 201(3) (ii) of the Act as was amended by Finance Act, 2012 with retrospective effect from 1/4/2010, it is to be held that section 201(3), as amended by Finance Act No.2 of 2014 shall not be applicable retrospectively and therefore, no order under section 201(1....
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....of the CIT(A). The details in question do not form part of the "Statement of Facts" filed with Form No. 35 either. This constitutes a mistake apparent from record, besides misleading the court with incorrect facts, on part of the assessee. 5. Further, it is noted that for the year under consideration i.e. FY 2010-11, where no statements were filed, the limitation was upto 31.03.2015 as per the (unamended) provisions applicable from 01.04.2010. Before expiry of limitation on 31.03.2015 and before accrual of any rights to the assessee, the I.T. Act was amended by the Finance Act, 2012 with retrospective effect from 01.04.2010 and the limitation got extended upto 31.03.2017 (6 years from the end of relevant FY.). Thus, the order passed by the AO on 11.09.2015 was within the limitation period. The Hon'ble ITAT has incorrectly mentioned in para 14 that "it is not in. dispute before us that the proceedings u/s 201(1) of the Act were barred by time prior to amendment to Section 201(3) by Finance Act 2 of 2014. ". The Hon'ble ITAT has not discussed the provision of section 201(3) as amended by Finance Act 2012 w.r.e.f 01.04.2010 which are applicable in the instant case." 10. We ....