2023 (12) TMI 1368 - AT - Income Tax

Validity of order u/s 201/201(1A) as barred by limitation - TDS not deducted on lease rent to New Okhla Industrial Development Authority (NOIDA) - HELD THAT - As gone through the provisions of section 201(3) of the Act as it stood at the relevant point of time and applicable to AY 2011-12, wherein it states that assessment for TDS return could not be framed beyond two years from the end of the Financial Year for which the assessment is sought to be framed. Accordingly, assessment framed by the Ld. AO on 28/12/2017 is barred by limitation. Further, we find that for the regular TDS returns filed by the assessee for AY 2011-12, the erstwhile TDS Officer had already framed an assessment u/s 201/201(1A) of the Act on 15/03/2012 accepting the claim of the assessee. Hence, the assessments stood completed for the AY 2011-12. This assessment was neither reopened by the Ld. AO nor subjected to any revision proceedings u/s 263 of the Act by the Ld. PCIT. While this is so, there is absolutely no need for the Revenue to have framed yet another assessment on 28/12/2017 for AY 2011-12 by taking a divergent stand with regard to applicability of TDS on lease rent paid to NOIDA. When this fact was brought to the notice of the Ld. CIT(A), the Ld. CIT(A) did not even bother to give any finding on the same. Hence, we have no hesitation to hold that the second assessment framed on 28/12/2017 deserves to be quashed as void ab-initio for more than one reason and it is also barred by limitation. Appeals of the assessee are allowed.

Summary

The appeals filed by the Assessee were allowed by the ITAT Delhi. The issue was regarding TDS on lease rent paid to NOIDA. The assessment framed on 28/12/2017 was held to be barred by limitation. The second assessment was quashed as void ab-initio. The appeals were allowed on 15th December, 2023.