Shri Rajesh Khandelwal, Kolkata V. I.T.O., Ward - 3(1), TDS, Kolkata, Kolkata

ITA 600/KOL/2022

AI Insights

The case involves an appeal by Shri Rajesh Khandelwal against an order from the National Faceless Appeal Centre (CIT(A)), which was passed under sections 201(1) and 201(1A) of the Income Tax Act. The primary contention was regarding the limitation period for issuing such orders. The assessee argued that the order was barred by limitation as per the amended provisions of section 201(3), which were applicable retrospectively from April 1, 2010. The Tribunal agreed with the assessee, noting that the notice was issued on January 7, 2019, which was beyond the permissible period for the assessment year 2012-13, leading to the quashing of the demand raised under sections 201(1) and 201(1A).

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 128306 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 07-02-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 27-10-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Retrospective amendment; TDS; Set aside
• Section: 250

Judgement Text

आयकर अपीलȣय अͬधकरण, कोलकाता पीठ ‘सी’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH KOLKATA Įी संजय गग[, ÛयाǓयक सदèय एवं Įी ͬगरȣश अĒवाल, लेखा सदèय के सम¢ Before Shri Sanjay Garg, Judicial Member and Shri Girish Agrawal, Accountant Member I.T.A. No.600/Kol/2022 Assessment Year: 2012-13 Shri Rajesh Khandelwal............................................................. Appellant 146, Mahatma Gandhi Road, Bangar Building, Kolkata-700007. [PAN: AFJPK8394P] vs. ITO, Ward-3(1), TDS, Kolkata......................................................... Respondent Appearances by: Shri Miraj D. Shah, AR, appeared on behalf of the appellant. Shri Vijay Kumar, Addl. CIT-DR, appeared on behalf of the Respondent. Date of concluding the hearing : February 08, 2023 Date of pronouncing the order : February 22, 2023 आदेश / ORDER संजय गग[, ÛयाǓयक सदèय ɮवारा / Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order dated 31.08.2022 of the National Faceless Appeal Centre [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). 2. At the outset, the ld. counsel for the assessee has taken additional legal ground pleading that the impugned order u/s 201(1A) was barred by limitation. He in this respect has relied upon section 201(3) of the Act, as applicable for the assessment year under consideration. The provisions of section 201(3) amended by Finance Act, 2012 with retrospective effect from 01.04.2010 is applicable which reads as follows: I.T.A. No.600/Kol/2022 Assessment Year: 2012-13 Shri Rajesh Khandelwal 2 “(3) No order shall be made under sub-section (1) deeming a person to be an assessee in default for failure to deduct the whole or any part of the tax from a person resident in India, at any time after the expiry of (i) two years from the end of the financial year in which the statement is filed in a case where the statement referred to in section 200 has been filed. (ii) six years from the end of the financial year in which payment is made or credit is given, in any other case Provided that such order for a financial year commencing on or before the 1st day of April, 2007 may be passed at any time on or before the 31st day of March, 2011.” 3. A perusal of the impugned order passed u/s 201(1)/201(1A) reveals that the assessment year involved in this appeal is A.Y 2012-13. The notice u/s 201(1)/201(1A) of the Act was issued to the assessee on 07.01.2019 which is time-barred. In view of this, the provisions of section 201(3) of the Act as reproduced above are applicable for the assessment year under consideration. In view of this, the impugned order of the Assessing Officer is set aside and the demand raised u/s 201(1)/201(1A) is also quashed. 4. In the result, the appeal of the assessee stands allowed. Kolkata, the 22 nd February, 2023. Sd/- Sd/- [ͬगरȣश अĒवाल/Girish Agrawal] [संजय गग[ /Sanjay Garg] लेखा सदèय/Accountant Member ÛयाǓयक सदèय/Judicial Member Dated: 22.02.2023. RS Copy of the order forwarded to: 1. Shri Rajesh Khandelwal 2. ITO, Ward-3(1), TDS, Kolkata 3. CIT I.T.A. No.600/Kol/2022 Assessment Year: 2012-13 Shri Rajesh Khandelwal 3 (A)- 4. CIT- , 5. CIT(DR), //True copy// By order Assistant Registrar, Kolkata Benches