28 April 2012
Can please anyone guide me on the following case?
The company ABC ltd filed its TDS Return for the 1st Quarter of FY2007-08 on 16th July 2007. The said company gets the notice of demand u/s156 of Income Tax Act,1961 and the order u/s 201(1)/201(1A) of the Income Tax Act,1961 as on September 3rd 2011. The notice date and the order date is same. The period mentioned under the notice of demand is within 30days of the receipt of notice. Then is such order legally valid? Or is it time barred according to Sub Section 3 of Sec 201? In case such a notice is legally valid and the reply for the notice is not filed on time but say on April 28th 2012, then what legal validity such a reply has got? What are the other legal consequences followed in the case given above?
29 April 2012
1. This is legal Notice. The purpose of Noitice U/s 156 is to intimate the assesse about the amount to be paid stated in Order and date of notice and order is same. Since order served within 4 Years from the end of the financial year, it is a valid Order and Notice. 2. Since it is a legal Notice, reply by treating it as a time barred notice might be not entertained. Since time limit to pay the amount was 3rd Oct- 2011, interest u/s 220(2) will have to pay.
02 May 2012
But as per Sec 201(3)the order u/s 201(1) can be passed only before the expiry of 2 years from the end of the financial year in which the statement u/s 200 is filed. Only in other cases the time limit is 4 years. But since the given assessee's case is covered under sub clause 1 itself, then 2 years from such date will be considered i.e.31st March 2010.. Then how come the notice is not time barred? Please explain and also give the section references if possible.
CAclubindia
