sec 201 TDS Appeal
This query is : Resolved
12 December 2010
1. a person was issued show cause notice for default u/s.201.
2. Now he has received Notice of Demand u/s 156 from the same AO for paying the tax determined within 30 days. No Order u/s 201 is received.
I want to know that: -
1. Can an appeal be filed befor CIT(A) against the demand notice u/s. 156?
2. if the person approaches the AO and demands the order, from which date the limitation of appeal shall start - date of receipt of notice u/s. 156 or date of receipt of order u/s. 201?
Please suggest in detail.
2. Now he has received Notice of Demand u/s 156 from the same AO for paying the tax determined within 30 days. No Order u/s 201 is received.
I want to know that: -
1. Can an appeal be filed befor CIT(A) against the demand notice u/s. 156?
2. if the person approaches the AO and demands the order, from which date the limitation of appeal shall start - date of receipt of notice u/s. 156 or date of receipt of order u/s. 201?
Please suggest in detail.
12 December 2010
1. Appeal cannot be filed under section 246A against demand notice issued under section 156.
2. Limitation period starts from the date of service of order. Pl refer section 249(2)(c).
2. Limitation period starts from the date of service of order. Pl refer section 249(2)(c).
Message likes :
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13 December 2010
Thanks Mr Chakrapani.
Then should the assessee should go to AO for issuing an order? Or could an appeal be filed against the "apperant/probable/anticipated" order u/s.201 on the basis of notice of demand u/s.156.
My points of confusion:-
The notice of demand u/s.156 states that demand has to deposited within 30 days. also is says that appeal should be filed within 30 days.
Sec. 249(2)(b) provides that appeal should be filed within 30 days from "date of service of the notice of demand", but in sec 246A, it is the order u/s.201 which is appelable, not the notice u/s.156.
Then should the assessee should go to AO for issuing an order? Or could an appeal be filed against the "apperant/probable/anticipated" order u/s.201 on the basis of notice of demand u/s.156.
My points of confusion:-
The notice of demand u/s.156 states that demand has to deposited within 30 days. also is says that appeal should be filed within 30 days.
Sec. 249(2)(b) provides that appeal should be filed within 30 days from "date of service of the notice of demand", but in sec 246A, it is the order u/s.201 which is appelable, not the notice u/s.156.
13 December 2010
1. Meet the ITO and obtain order u/s.201.
2. File appeal u/s 246A(1)(ha) read along with 249(2)(c).
2. File appeal u/s 246A(1)(ha) read along with 249(2)(c).
13 December 2010
Thanks.
Pls drop a line about the date of reckoning limitation - date of receipt of order u/s.201 or receipt of demand notice.
Pls drop a line about the date of reckoning limitation - date of receipt of order u/s.201 or receipt of demand notice.
13 December 2010
Date of service of order u/s 201.
Message likes :
1 times
14 December 2010
Are the orders passed u/s. 201 rectifiable u/s. 154 ? --
If yes, should the petition u/s.154 also be filed besides filing appeal u/s. 246A
If yes, should the petition u/s.154 also be filed besides filing appeal u/s. 246A
23 July 2025
This is a very relevant query regarding **TDS default proceedings under Section 201**, particularly the **appealability** of the **demand notice under Section 156**, and how it interacts with the **order under Section 201**.
Let’s answer each part of your question thoroughly and precisely.
---
## 🔹 Situation Recap:
* A person received:
* **Show-cause notice** u/s 201 for TDS default
* Later, received **Notice of Demand u/s 156** (but **no copy of 201 order** was served)
* Now, you want to know about the right to **appeal**, **limitation**, and **rectification**.
---
## ✅ Q1: **Can appeal be filed before CIT(A) against the demand notice u/s 156?**
➡️ **NO**, you **cannot appeal** *directly* against the **Notice of Demand under Section 156**, because:
* **Section 156** is just a **consequence of another order**, not an **independent order**.
* It is **not appealable in isolation** under Section 246A.
✅ However:
* You can appeal the **underlying order passed u/s 201(1)/201(1A)** — which leads to the demand.
📝 So:
> Appeal lies **against the Section 201 order**, **not against Section 156** demand itself.
---
## ✅ Q2: **If the person demands the order u/s 201, from which date does the appeal period start?**
➡️ The **limitation period** for filing appeal to CIT(A) is **30 days from the date of service of the order u/s 201**, as per **Section 249(2)(b)**.
* Since the **order under Section 201 has not yet been served**, the **limitation period has not started**.
* Once the **order is received**, the 30-day appeal period begins from **date of service**.
✅ Suggestion:
* **Immediately approach the AO in writing** and **demand a copy of the Section 201 order**.
* Keep record of this request — it protects you from missing the appeal window due to non-receipt.
---
## ✅ Q3: **Is the order u/s 201 rectifiable under Section 154?**
➡️ **Yes**, Section 201 orders **can be rectified u/s 154**, provided:
* There is an **apparent mistake** (e.g. computation, factual error)
* The rectification is made **within 4 years** from the end of the financial year in which the order was passed
📌 But rectification is **not a substitute for appeal** — if you're challenging the **principle or interpretation**, go for **appeal**.
---
## ✅ So, What Should Be Done?
| Step | Action |
| ---- | ----------------------------------------------------------------------------------------------------------------------------- |
| 1️⃣ | Write to AO and **demand a copy of the order u/s 201** |
| 2️⃣ | Once received, **file an appeal u/s 246A** within 30 days |
| 3️⃣ | If there's a genuine mistake, file **rectification petition u/s 154** (parallel to or instead of appeal, depending on nature) |
---
## 📌 Summary of Your Questions
| Question | Answer |
| -------------------------------------------- | ------------------------------------------------------------------------------------- |
| Can appeal be filed against Sec. 156 notice? | ❌ No, only against Sec. 201 order |
| Appeal limitation starts from? | 📅 From **date of receipt of Sec. 201 order** |
| Is Sec. 201 order rectifiable u/s 154? | ✅ Yes, if there's a **mistake apparent on the record** |
| Should both 154 and appeal be filed? | ✅ Yes, if appropriate — **154 for minor mistakes**, **appeal for substantive issues** |
---
Let me know if you need:
* Draft of a **letter to AO requesting Sec. 201 order**
* Format for **appeal to CIT(A)**
* Sample **Section 154 rectification request**
Happy to assist further.
Let’s answer each part of your question thoroughly and precisely.
---
## 🔹 Situation Recap:
* A person received:
* **Show-cause notice** u/s 201 for TDS default
* Later, received **Notice of Demand u/s 156** (but **no copy of 201 order** was served)
* Now, you want to know about the right to **appeal**, **limitation**, and **rectification**.
---
## ✅ Q1: **Can appeal be filed before CIT(A) against the demand notice u/s 156?**
➡️ **NO**, you **cannot appeal** *directly* against the **Notice of Demand under Section 156**, because:
* **Section 156** is just a **consequence of another order**, not an **independent order**.
* It is **not appealable in isolation** under Section 246A.
✅ However:
* You can appeal the **underlying order passed u/s 201(1)/201(1A)** — which leads to the demand.
📝 So:
> Appeal lies **against the Section 201 order**, **not against Section 156** demand itself.
---
## ✅ Q2: **If the person demands the order u/s 201, from which date does the appeal period start?**
➡️ The **limitation period** for filing appeal to CIT(A) is **30 days from the date of service of the order u/s 201**, as per **Section 249(2)(b)**.
* Since the **order under Section 201 has not yet been served**, the **limitation period has not started**.
* Once the **order is received**, the 30-day appeal period begins from **date of service**.
✅ Suggestion:
* **Immediately approach the AO in writing** and **demand a copy of the Section 201 order**.
* Keep record of this request — it protects you from missing the appeal window due to non-receipt.
---
## ✅ Q3: **Is the order u/s 201 rectifiable under Section 154?**
➡️ **Yes**, Section 201 orders **can be rectified u/s 154**, provided:
* There is an **apparent mistake** (e.g. computation, factual error)
* The rectification is made **within 4 years** from the end of the financial year in which the order was passed
📌 But rectification is **not a substitute for appeal** — if you're challenging the **principle or interpretation**, go for **appeal**.
---
## ✅ So, What Should Be Done?
| Step | Action |
| ---- | ----------------------------------------------------------------------------------------------------------------------------- |
| 1️⃣ | Write to AO and **demand a copy of the order u/s 201** |
| 2️⃣ | Once received, **file an appeal u/s 246A** within 30 days |
| 3️⃣ | If there's a genuine mistake, file **rectification petition u/s 154** (parallel to or instead of appeal, depending on nature) |
---
## 📌 Summary of Your Questions
| Question | Answer |
| -------------------------------------------- | ------------------------------------------------------------------------------------- |
| Can appeal be filed against Sec. 156 notice? | ❌ No, only against Sec. 201 order |
| Appeal limitation starts from? | 📅 From **date of receipt of Sec. 201 order** |
| Is Sec. 201 order rectifiable u/s 154? | ✅ Yes, if there's a **mistake apparent on the record** |
| Should both 154 and appeal be filed? | ✅ Yes, if appropriate — **154 for minor mistakes**, **appeal for substantive issues** |
---
Let me know if you need:
* Draft of a **letter to AO requesting Sec. 201 order**
* Format for **appeal to CIT(A)**
* Sample **Section 154 rectification request**
Happy to assist further.
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