The assessee company is engaged in the business of generation, purchase, transmission and distribution of electricity. The assessee had made a remittances to certain foreign parties without deduction of any tax at source.AO  treated the assessee in default and passed the order u/s 201(1) and 201(IA of the Act. CIT (A) confirmed the disallowance. The assessee challenged the order passed by the CIT(A) on the grounds viz. that, as the order passed by the ITO(IT)-TDS, Range-2, Mumbai was beyond the period specified in the proviso to section 201(3) Act therefore, the same was barred by limitation.  Tribunal quashed the order on the ground that limitation period prescribed in sub-section (3) of section 201 would be equally applicable in respect of non-residents. The Tribunal also held that the revenue had not taken any action against the payee viz. Entec U.K. Ltd for non deduction of tax at source and also the time limit for taking such action against them u/s.148 had expired, therefore, the order against the payer assessee under S. 201(1) & 201(IA) read with section 195 dt. 31-10-2013 would be in valid. Accordingly the order passed ITO (TDS is also struck down.    (AY.2007-08)