Case Law Details
Our attention has also been invited to two judgments of the Honourable Delhi High Court which are on the same principle and as to whether in the absence of any time limit the proceedings under Sections 201 and 201(1A) of the Income Tax Act, 1961 could be initiated at any time. In following it’s earlier judgment in the case of Commissioner of Income Tax v/s NHK Japan Broadcasting Corporation reported in (2008) 305 ITR 137 (Delhi), the Delhi High Court upheld the view of the Tribunal and dismissed the Revenue’s Appeal [Commissioner of Income Tax v/s Hutchison Essar Telecome Ltd. reported in (2010) 323 ITR 230 (Delhi)].
Once same provisions are invoked in the present case, then, the Honourable Delhi High Court, with respect, rightly concluded that though Section 201 does not prescribe any limitation period for the Assessee being declared as an Assessee in Default yet the Revenue will have to exercise the powers in that regard within a reasonable time. In such circumstances we are of the view that the Tribunal’s order in this case does not suffer from any error of law apparent on the face of record or perversity warranting our interference in appellate jurisdiction.
