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TMI Blog2022 (2) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 - Shri Amarjit Singh (Judicial Member) And Shri Amarjit Singh (Accountant Member) For the Assessee : Shri Dinkle Hariya For the Revenue : Shri Achal Sharma ORDER PER AMARJIT SINGH, A.M: The present appeal filed by the revenue and directed against the order of the Ld. CIT(A)-59, Mumbai, which in turn arises from the order passed by the A.O u/s 201(1)/201(1A) dated 26.03.2018. The revenue has assailed the impugned grounds before us: 1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in holding that the amendment for extension of limitation period to 7 years from the end of the financial year was provided by the Finance Act, 2014 w.e.f. 01.10.2014. The assessee's cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was related to the rental activities, therefore, tax should have been deducted @ 10% as against deduction of tax made at 2% of the payment made. It was noticed that the assessee has made such payments on account of occupation of the units/shops at R City Mall Ghatkopar of R City Mall Developer Pvt. Ltd. During the financial year relevant to the assessment year under consideration the assessee had made payment of ₹ 5,33,97,180/- towards AC maintenance, house keeping and security etc by deducting TDS @ 2% u/s 194 of the I.T. Act. Therefore, the A.O issued show cause to the assessee to explain why not the tax was deducted @ 10% instead of 2% on the said payment made by the assessee company. The assessee had furnished the required detail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e an assessee in default for failure to deduct the whole or any part of the tax from a person resident in India, at any time after the expiry of seven years from the end of the financial year in which payment is made or credit is given or two years from the end of the financial year in which the correction statement is delivered under the proviso to sub-section (3) of section 200, whichever is later. The period of limitation to 7 years from the end of the F.Y. was provided by the Finance Act, 2014 prior to it Sec. 201(3) of the Act applicable from 01.04.2010 read as under: (3) No order shall be made under sub-section (1) deeming a person to be an assessee in default for failure to deduct the whoel or any part of the tax from a per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1(3) as amended by Finance (No.2) Act, 2014 with effect from 1.04.0214, shall not apply retrospectively to orders which had alrady become time barred uner old time liitation of two years as set out by unamended section 201(3)(i) and, thus, no order under section 201(1)201(1A) deeming tax deductor to be assessee in default can be passed if limitation has already expired as on 1.04.2014. After taking into consideration the ratio of te judicial pronoucements as supra we consider that the order u/s 201(1) of the Act ought to have been passed by 31st March, 2014 i.e within 2 years from the end of the financial year in which the statement was filed however, the impuged order has been passed to 26th March, 2018, therefore, the limitation peri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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