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| The Tax Publishers2019 TaxPub(DT) 0676 (Visakhapatnam-Trib) INCOME TAX ACT, 1961
Section 201(1)/(1A)
Till such time, the notice was issued under section 201/201(1A), neither AO of non-resident vendor nor AO of the assessee had initiated any action, thus, impugned notice issued beyond reasonable period of 4 years was barred by limitation and therefore, set aside.
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Tax deduction at source - Assessee-in-default - Payment to non-resident - Issuance of notice beyond 4 years
AO issued notice under section 201(1)/201(1A). After a laspe of 5 years from the end of financial year in which payment was made by assessee to non-resident without deduction of tax under section 195. Assessee's case was that time limit for initiating proceedings under section 201 and 201(1) was beyond 4 years and this notice was barred by limitation. AO rejected this on the ground that there was no time limit in case of payment made to non-residents.Held: Till such time, the notice was issued under section 201/201(1A), neither AO of non-resident vendor nor AO of the assessee had initiated any action, thus, impugned notice issued beyond reasonable period of 4 years was barred by limitation and therefore, set aside.
Relied:Bheemarasetty Sunitha v. Dy. Director of IT (IT & TP) Visahapatnam ITA No. 119/Vizag/2016 and S.a. No. 10/Vizag/2016, dt. 23-6-2017 and CIT-II, Hyderabad v. U.B.Electronic Instruments Ltd. in I.T.T.A.No. 331 of 2003, dt. 12-11-2014.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
IN THE ITAT, VISAKHAPATNAM BENCH
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