ITO v. Bata India Ltd. [M.A. No. 227/Kol/2019, along with ITA No. 914/Kol/2017, dt. 10-7-2020] : 2020 TaxPub(DT) 2807 (Kol-.Trib.)

Notice for default in deduction of TDS beyond 6 years on non-resident under section 201(3) validity thereof

Facts:

The ITAT in this miscellaneous application was forced to recall its earlier dismissed order due to application of appeal threshold limits. The main issue before ITAT was assessee a non-resident was slapped a notice under section 201(3) by assessing officer on 3-4-2009 for failure to pay TDS deducted on royalty payments for F.Y. 2002-03 which was after the limit of 6 years. On appeal Commissioner (Appeals) annulled the notice as the notice was beyond 6 years. On higher appeal by department --

Held in favour of the department that the limitation of 6 years under section 201(3) was only for a resident and since assessee allegedly being a non-resident, the 6 year limitation could not apply. The order of assessing officer thus stood reinstated.