Case Law Analysis
|Bombay High Court
Section 201(3) Income Tax Act | Limitation for TDS Default Proceedings Runs Quarter-Wise, Not Annually : Bombay High Court
The Bombay High Court ruled that the limitation period for TDS default proceedings under Section 201(3) of the Income Tax Act begins separately for each quarterly return, not cumulatively for the financial year. This interpretation strengthens taxpayer protections by preventing retrospective defaults for earlier quarters. Businesses and tax practitioners must now ensure compliance on a quarterly basis to avoid time-barred proceedings.