2015 (11) TMI 544 - HC - Income Tax

Validity of notice under Section 201 - period of limitation - Held that - The proviso to sub-Section (3) stipulates that an order can be passed at any time on or before 31.03.2011. This makes it clear that insofar as the Financial Year 2007-2008 is concerned in the circumstances of this case no order can be made under sub-Section (1) of Section 201 after 31.03.2011. Since the notice itself had been issued on 17.02.2014 it is clearly time barred. Consequently the impugned notice dated 17.02.2014 as also the order dated 14.03.2014 cannot survive. They are set aside. - Decided in favour of assessee.

Summary

The Delhi High Court ruled in favor of the petitioner in a writ petition challenging a notice issued by DCIT Circle 51 (1) under Section 201 of the Income Tax Act for the Financial Year 2007-2008. The court found the notice to be time-barred as it was issued after 31.03.2011, contrary to the proviso in Section 201(3). The notice and subsequent order were set aside, and the writ petition was allowed with no costs.