9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (11) TMI 1199 - AT - Income TaxLevy of fee under Section 234E - processing the TDS statement furnished by the assessee u/s 200A - Fee for default in furnishing statements - Held that - Prior to 01.06.2015, there was no enabling provision in Section 200A of the Act for making adjustment in respect of the statement filed by the assessee with regard to tax deducted at source by levying fee under Section 234E of the Act. The Parliament for the first time enabled the Assessing Officer to make adjustment by levying fee under Section 234E of the Act with effect from 01.06.2015. Therefore, as rightly submitted by the assessee, while processing statement under Section 200A of the Act, the Assessing Officer cannot make any adjustment by levying fee under Section 234E prior to 01.06.2015. See M/s Neelagiris Textiles v. DCIT 2015 (7) TMI 639 - ITAT CHENNAI In the case before us, the Assessing Officer levied fee under Section 234E of the Act while processing the statement of tax deducted at source under Section 200A of the Act. Therefore, this Tribunal is of the considered opinion that the fee levied by the Assessing Officer under Section 234E of the Act while processing the statement of tax deducted at source is beyond the scope of adjustment provided under Section 200A of the Act. Therefore, such adjustment cannot stand in the eye of law. - Decided in favour of assessee.
Issues involved:
Levy of fee under Section 234E of the Income-tax Act, 1961 while processing statements under Section 200A. Analysis: The appeals were filed against the orders of the Commissioner of Income Tax (Appeals) in which the common issue was the levy of fee under Section 234E of the Income-tax Act, 1961 while processing statements under Section 200A. The Tribunal considered the arguments of both the assessee's counsel and the Departmental Representative. The Departmental Representative contended that Section 234E of the Act, introduced from 01.07.2012, empowered the Assessing Officer to levy a fee when the assessee failed to deliver the statement within the prescribed time under Section 200(3) of the Act. The Tribunal referred to a previous case, M/s Neelagiris Textiles v. DCIT, where it was observed that prior to 01.06.2015, the Assessing Officer did not have the power to adjust by levying a fee under Section 234E of the Act. The Tribunal noted that Section 200A of the Act was amended by the Finance Act, 2015, from 01.06.2015, allowing the Assessing Officer to make adjustments by levying a fee under Section 234E. It was clarified that before this amendment, there was no provision for such adjustments. The Tribunal highlighted that the Assessing Officer could not make any adjustment other than those prescribed in Section 200A of the Act. The Tribunal, following the precedent set in the Neelagiris Textiles case, concluded that the fee levied by the Assessing Officer under Section 234E of the Act while processing the statement of tax deducted at source was beyond the scope of the adjustment provided under Section 200A of the Act. Therefore, the fee levied in such a manner was deemed invalid. Consequently, the Tribunal set aside the orders of the lower authorities and allowed all the appeals of the assessees. In conclusion, the Tribunal's decision was based on the interpretation of the relevant provisions of the Income-tax Act, emphasizing the limitations on the Assessing Officer's power to levy fees under Section 234E while processing statements under Section 200A. The judgment provided clarity on the statutory framework governing such levies and adjustments, ensuring adherence to legal requirements and preventing unauthorized impositions of fees.
|
