SUDHIR AGARWAL,J. - (1.) This appeal under Section 260-A of Income Tax Act, 1961 (herein after referred to as the "Act, 1961") has arisen from judgment and order dated 06.07.2004 passed by Income Tax Appellate Tribunal, Lucknow Bench, Lucknow (herein after referred to as "Tribunal") in Income Tax Appeal No. 483/LUC/2003 relating to Assessment Year 1994-95.
(2.) This appeal was admitted by earlier Division Bench on 25.02.2008 on the following substantial questions of law: "1. Whether on the facts and in the circumstances of the case, Income Tax Appellate Tribunal was justified in summarily dismissing the order passed by C.I.T. (Appeals) sustaining levy of interest under Sections 201(1) and 201 (1A) of Income Tax Act, 1961 on the ground of limitation only without appreciating that there is no prescribed time limit for invoking provisions of Section 200 and Section 201 of Act and the same are attracted immediately upon happening of an event, namely, payment and failure to deduct tax as required by Section 200? 2. Whether on the facts and in the circumstances of the case, Income Tax Appellate Tribunal was justified in applying limitation period of four years while relying on its decision in the case of Sahara Airlines Ltd. and holding that order under Section 201 (1)/201(1A) passed by Assessing Officer was beyond period of limitation and, therefore, quashed the same?"
(3.) Facts in brief are that M/s Indo Gulf Corporation Limited i.e. the respondent, (herein after referred to as "Assessee-IGCL) brought out Euro Dollar issue of GDR (Global Depository Receipt) for US Dollar of 100 Million. Assessee-IGCL employed some non-resident Lead Managers for assisting it in all aspects of consultancy for preparing documents connected with bringing out the issue, dealing with various regulatory authorities in India and abroad, Due Diligence Certificate, arranging road shows and all other connected matters inclusive of managing and under-writing the issue. It was liable to deduct TDS under Section 195 on the payment made to lead Manager and its associates, but no such deduction was made and hence, no TDS was deposited in Government business. The total amount of TDS, Assessee-IGCL failed to deduct was computed at US Dollar 2,142,857/-. The tax was to be deducted in January, 1994. The Assessing Officer passed order for computing amount of TDS under Section 195 as US Dollor 2,142,857/- and thereafter passed an order under Section 201(1) and 201(1A) of Act, 1961 on 4.1.2000. It worked out interest liability on the aforesaid amount for the period January, 1994 to December, 1999 to US Dollar 1,939,286/- and demanded total sum of US Dollar 4,082,143/- from Assessee-IGCL, treating it to be an Assessee in default.;