|The Tax Publishers2021 TaxPub(DT) 0794 (Visakhapatnam-Trib)
INCOME TAX ACT, 1961
Where action taken by AO levying TDS by issuing notice under section 195 was more than six years from the end of the financial year in which the transaction took place, would be held as barred by limitation.
Tax deduction at source - Interest under section 210(1A) - Proceedings barred by limitation -
Assessee did not deduct tax at source as required under section 195 for the payment made to the NRI, therefore, assessee was treated as assessee-in-default for non-deduction of tax at source under section 195 for the assessment year 2011-12 and consequent interest was levied under section 201(1A). Held: In the instant case, the transaction took place on 24-4-2010, i.e., in the financial year 2010-11 and AO passed the order on 22-3-2018 by issue of notice under section 195 on 18-9-2017. Thus, the action taken by the AO was more than six years from the end of the financial year in which the transaction took place. Thus, the assessee's case was squarely covered by the decision of Bheemarasetty Sunitha [ITA No.119/Viz/2016 dt. 23-6-2007]. Hence, proceedings initiated by AO were barred by limitation.
Followed:Bheemarasetty Sunitha [ITA No.119/Viz/2016 dt. 23-6-2007].
FAVOUR : In favour of assessee.
A.Y. : 2011-12
IN THE ITAT, VISAAKHAPATNAM BENCH
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