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TMI Blog2023 (8) TMI 1189X X X X Extracts X X X X X X X X Extracts X X X X ..... Nagpur zone by appointing a centralized consultant, who filed the appeals for all the branches in coordination with income-tax department and addressed all the pending disputes anent to this issue. The delay in presenting the appeals was neither deliberate nor an act of negligence, but was caused by genuine difficulty and inability to act promptly at branch level due to reasons adduced above. Ex consequenti, we hold that there was a reasonable and sufficient cause for the delay in presenting the appeals before the ld. CIT(A). We, therefore, condone the delay. Limit limit to pass order u/s. 201(1)/201(1A) - default for non-deduction of tax at source u/s 194A on interest paid/credited to its customers - HELD THAT:- As the time limit for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... & 2011- 112. Since common issues are raised in these appeals, we are, therefore, proceeding to dispose them off by this consolidated order for the sake of convenience. 2. There is a delay of 99 days in the filing of appeals in ITA Nos. 269 to 272/Nag/2022. The condonation applications have been filed. We are satisfied with the reasons. The delay is condoned and the appeals are admitted for disposal. 3. The only issue raised in these appeals is against the confirmation of the orders passed by the AOs u/s. 201(1)/201(1A) of the Act treating the assessee in default for non-deduction of tax at source u/s 194A on interest paid/credited to its customers and also non-condonation of delay by the ld. CIT(A) in presenting the appeals before him. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was found that they were paying/crediting interest into their clients' accounts for a sum in excess and the maximum amount not chargeable to tax on receiving Form Nos.15G/15H. The case of the assessee-branches is that they received notice individually about the default in compliance, but were not technically equipped to handle the issue. Some branches appointed consultants at individual level, who also kept on changing. Thereafter, the Zonal office of Bank of India, Nagpur, took up the matter for all the branches of Nagpur zone by appointing a centralized consultant, who filed the appeals for all the branches in coordination with income-tax department and addressed all the pending disputes anent to this issue. The delay in presenting the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e time limit for passing of the order under section 201. The relevant part of section 201(3), prior to its substitution by the Finance (No.2) Act, 2014 w.e.f. 01-10-2014, reads as under : "No order shall be made under sub-section (1) deeming a person to be 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-- (i) two years from the end of the financial year in which the statement is filed in a case where the statement referred to in section 200 has been filed; (ii) four years from the end of the financial year in which payment is made or credit is given, in any other case : Provided that such order for a financial year commencing on or before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O was within time limit as the case fell under section 201(3)(ii) of the Act. In our opinion, the ld. CIT(A) has taken a hyper technical view of the provision, which, in fact, contemplates only two situations, viz., where the statement is filed and where it is not filed. Neither the provision provides for filing separate statement for each client, nor the necessary form permits so. The crux is that if the statement is filed, the case falls under clause (i). Simply some mistake, if at all, here and there in the statement does not erase the filing of the statement. To put it simply, once the statement is filed by the bank branch, the same has to be treated as a case falling u/s. 201(3)(i) of the Act. 9. Adverting to the facts of the case, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -10 and 2010-11. A subsequent amendment to the provision cannot give a new lease of life to the time limit which has already exhausted. Hence, for the years under consideration, it is only the sub-section (3) as amended by Finance Act, 2012 with retrospective effect from 01-04-2010, which shall prevail. Resultantly, the orders passed by the AO beyond the stipulated time limit are time barred and hence quashed. In the absence of the existence of any valid orders u/s. 201(1)/201(1A), the proceedings flowing therefrom also get annulled. We, therefore, overturn the impugned orders holding the assessees to be in default in terms of section 201 of the Act. 11. In the result, all the appeals are allowed. Order pronounced in the Open Court on 23r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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