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TMI Blog2012 (5) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... – against revenue. - ITA No.9 of 2012 - - - Dated:- 24-4-2012 - Mr. Justice R.B.Misra, Mr. Justice Sanjay Karol, JJ. For the appellant: Mr.Vinay Kuthiala, Senior Advocate with Mr. Diwan Negi, Advocate. For the respondent: Nemo Sanjay Karol, J. (oral) The present appeal is filed with the following substantial question of law:- Whether on the facts and in the circumstances of the case, the Hon ble ITAT was right in law in holding that the order u/s 201(1) 201(IA) passed by the A.O. beyond four years was barred by time limitation when there is no such provisions of time limitation for passing order u/s 201(1) 201(IA) in the Income Tax Act, 1961. 2. Briefly stated facts are that assessee (respondent herei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pan Broadcasting Corporation 2008 (305) ITR 137 taking note of the judgment of the Apex Court in State of Punjab and others Vs. Bhatinda District cooperative Milk Producers Union Ltd [2007 (11) SCC 363] held that though no period of limitation is prescribed for exercising power under Section 201(1) and 201(1A) of the Income Tax Act, 1961 still if such power is not exercised within a reasonable period, the same would become time-barred. In the case before the Delhi High Court, the assessee was a foreign company which carried on business in India. It had paid salary to its employees who were posted in India in two ways. Part of the salary was paid in India and part of the salary which was termed as global salary was paid in the home country ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for completing the assessment, which is two years from the end of the assessment year in which the income was first assessable. It is well known that the assessment year follows the previous year and, therefore, the time limit would be three years from the end of the financial years. This seems to be a reasonable period as accepted under section 153 of the Act, though for completion of assessment proceedings. The provisions of reassessment are under sections 147 and 148 of the Act and they are on a completely different footing and, therefore, do not merit consideration for the purpose of this case. Even though the period of three years would be a reasonable period as prescribed by section 153 of the Act for completion of proceedings, we h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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