2016 (9) TMI 1442 - AT - Income Tax

Processing fee charged u/s 234E while processing the statement furnished by the assessee u/s 200A - Held that - Appeal is covered in favour of the assessee by the decision of ITAT Amritsar Bench in the case of Sibia Healthcare Private Limited vs. DCIT 2015 (6) TMI 437 - ITAT AMRITSAR wherein it has been held that prior to 01.06.2015, there was no enabling provision u/s 200A of the Act for raising a demand in respect of levy of fee u/s 234E - Decided in favor of assessee.

Summary

Issues:
Appeal against processing fee charged u/s 200A read with section 234E before 1.6.15.

Analysis:
The judgment involves two appeals of different assesses for the assessment years 2012-13 & 2013-14 against separate orders passed by the ld. CIT(A), Bathinda. The issue involved in both appeals is common, and thus, they are being disposed of by a composite order. The appellant challenged the processing fee charged under section 200A read with section 234E before 1.6.15. The intimation dated 27.04.2014 imposed a late filing fee of ?12,000 under section 234E on the assessee for the 4th quarter of the financial year 2012-13, which was filed on 04.09.2013. The appellant argued that the fee was not an adjustment under section 200A but a separate charge based on the date of filing the TDS statement. The CPC used the intimation under section 200A to communicate the fee, which was not an adjustment under the Act. The ld. CIT(A) upheld the levy under question, finding no cause for interference.

The appellant further appealed, citing a favorable precedent 'Sibia Healthcare Pvt. Limited vs. DCIT'. The appellant contended that the matter was similar to the cited case, where the TDS statement was filed on 19.02.2014, and the intimation was dated 11.01.2014. However, in the present case, the statement was filed on 04.09.2013, and the intimation was dated 27.04.2014. The Tribunal examined the record and held that before 01.06.2015, there was no provision in section 200A for raising a demand regarding the levy of fee under section 234E. Following the decision in 'Sibia Healthcare Pvt. Ltd.', the Tribunal concluded that the levy of fee in the present case was not sustainable in law. The difference in dates of filing and intimation did not affect the decision, as the financial year remained the same in both cases.

Regarding the second appeal for the assessment year 2013-14, the facts were identical to the earlier case. The Tribunal applied the observations made in the previous case to this appeal as well, leading to the allowance of the appeal. Consequently, both appeals were allowed, and the levy of fee was deleted. The order was pronounced in the open court on 15/09/2016.