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TMI Blog2019 (9) TMI 851X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Act, 1961 (the Act) concerning A.Y. 2009-10. 2. The grounds of appeal raised by the assessee read as under:- "1. On the facts and in the circumstances of the case, the learned C.I.T. (Appeals) erred in rejecting the relevant ground of appeal raised before him by the appellant-company to the effect that the order passed by the Assessing Officer dated 18.3.2015 under section 206C(6A)/ 206C(7) of the I. T. Act is bad in law, being time barred. 2. On the facts and in the circumstances of the case, the learned C.I.T. (Appeals) erred in confirming the Assessing Officer's finding that the appellant-company is an "assessees in default" u/s. 206C(6A) of the I.T. Act for non-collection of tax at source on sale of heavy scrap. 3. On the fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of failure to collect tax. A demand of Rs. 1,48,527/- was imposed for default in respect of tax under sec. 206C(6A) of the Act. Interest of Rs. 1,71,397/- on such default was also levied under sec. 206C(7) of the Act. The aggregate demand of Rs. 3,19,934/- was accordingly raised on the assessee by the AO by passing order under sec. 206C(6A)/206C(7) of the Act order dated 16.03.2015 for A.Y. 2009-10 in question. 4. Aggrieved, the assessee preferred appeal before the CIT(A) without any success. 5. Further aggrieved, the assessee preferred appeal before the Tribunal. 6. We have considered the rival submissions on the issue and also perused the orders of the lower authorities. The controversy before us is whether the assessee can be 'treate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ime and the AO cannot be permitted to pass such order of alleged default in compliance of TCS provisions under sec. 206C of the Act after unreasonable lapse of time. It is thus contended on behalf of the assessee and order passed under sec. 206C of the Act imposing tax and interest for alleged default is vitiated by lapse of time in this regard. It is the case of the assessee that it is an established legal position that wherever under the scheme of the Act with reference to some obligations, no time limit is prescribed for passing an order especially an order having penal consequences, the order must be passed by the authorities within a reasonable period of time. It was reiterated that Section 206C(6A) of the Act is silent on the time lim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oses of viewing what is reasonable time. We do not see much force in such presumption especially in the matter of limitation. The limitation prescribed under one provision of the Act cannot be applied straightway to some other provisions of the Act. The legislature, in its wisdom, inserted sub-section (3) under sec. 201 of the Act by the Finance (No.2) Act, 2009 w.e.f. 2001 proposing time limit for passing orders under sec. 201 of the Act with reference to tax deduction at source. However, no such limitation provision has been enacted with regard to tax collection at source as provided in Section 206C till date. Under the circumstances, where no time limit has been prescribed by the statute for passing order in respect of default in collect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the Act at the relevant time. The Hon'ble High Court observed that time limit would be three years from the end of the financial year which seemed to be reasonable period as accepted under sec. 153 of the Act, though for completion of assessment proceedings. However, a greater period of four years for commencement or initiation of proceedings was given by the Hon'ble Delhi High Court in NHK Japan Broadcasting Corpn.'s case (supra) and Hutchison Essar Telecom Ltd.'s case (supra). In view of the judicial fiat available in this regard which is beneficial to the assessee qua the time period prescribed for deduction of tax at source in Section 201(3) of the Act, we would give primacy to the judicial precedents in the absence of express stat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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