Asstt. CIT v. Samsung India Electronics (P) Ltd. [ITA No. 4853/Del/2011, dt. 19-2-2016] : 2016 TaxPub(DT) 1169 (Del-Trib)

Limitation for proceedings under section 201(1) for assessment year prior to insertion of section 201(3) vide Finance Act, 2009

Facts:

Assessee Samsung had given 75 vehicles as dealier incentive to its dealers. No TDS under section 194-H for commission was done on such dealer incentive in kind. Notice to the assessee deeming them in default under section 201 was issued on 9-2-2011 after a gap of 8 years and 10 months from the end of F.Y. 2001-02 which was the year in which the year in which the incentive was given. Tax and interest under section 201(1A) were demanded. On appeal the Commissioner (Appeals) granted relief citing that the notice was belated even beyond 4 years as per a number of decisions. On further appeal to the ITAT the same was upheld in favour of the assessee.

Held in favour of the assessee.

A time limit of 3 or 4 years is fair to invoke section 201 after the end of the financial year as held in a number of decisions for years prior to insertion of section 201(3) in the statute.

Decisions Applied:

CIT v. NHK Japan Broadcasting Corporation Ltd. 305 ITR 137(Delhi)

CIT v. Hutchinson Essar Telecom Ltd. (2010) 323 ITR 230 (Delhi)

Mahindra & Mahindra v. DCIT (2009) 313 ITR(AT) 263