Case Law Details
Case Name : CIT Vs Moradabad Toll Road Company (Delhi High Court)
Appeal Number : ITA No. 93/2015
Date of Judgement/Order : 13/02/2015
Related Assessment Year :
Issue before court:
Whether proceeding u/s 201 initiated against assessee is barred by limitation.
- Assessee Company was sought to be as assessee in default for the FY 2002-03 and AY 2003-04. Hence addition was made accordingly and demand was raised.
- The assessee’s position was that treating the assessee company as one in default irrespective of past assessment years this was arrested that its returns were financed much earlier and that the action under Section 201 is belated.
- CIT (A) followed decision of CIT NHK Japan Broadcasting Corporation (2008) 305 ITR 137 (Del) and CIT vs. Hutchison Essar Telecome Ltd. (2010) 323 ITR 230 (Delhi) and decided issue in favour of assessee.
- ITAT also favoured assessee.
Contention of the revenue:
The subsequent developments after Japan Broadcasting (supra) was decided determined its ratio. He relies upon the amendment by which Section 201(3) substituted with effect from 01.04.2010 and whereby the period of limitation indicated was six years and subsequently by another substitution w.e.f. 01.10.2014, by Finance Act No.2 of 2014, whereby the period of limitation was extended to seven years.
Contention of the assessee:
The case was squarely covered by the decisions of NHK Japan Broadcasting (Supra) and Hutchison Essar (Supra).
Held by the court:
- The substantial time as extended in the previous judgment of this Court in Commissioner of Income Tax (TDS)-I vs. C.J.International Hotels Pvt. Ltd. (in ITA No.57/2015) decided on 09.02.2015, as discussed elaborately in a reasoned order of this Court, two reasons for the Court to reject the submissions;
- Section 201 itself was amended, by introduction of Section 201(1) (A), significantly that amendment was given irrespective effect from 01.04.1966;
- The Parliament consciously did not amend Section 201 by inserting subsection (3) with irrespective effect.
The decision rendered in NHK Japan Broadcasting (Supra) is a good law for the proceedings initiated u/s 201 before 01.04.2010.