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2019 (1) TMI 1791 - AT - Income TaxLate filing of fees u/s.234E - intimation u/s.200A - at what point of time chargeability of levying fees can be done even prior to the amendment was effected i.e.1.06.2015? - HELD THAT - Prior to 01.06.2015, there was no enabling provision of 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 - AO has exceeded his jurisdiction in levying fee u/s.234E while processing the statement and made adjustment u/s.200A of the Act which is not justified. Thus while processing statement under section 200A the AO cannot make any adjustment by levying fee under section 234E prior to 01.06.2015. Therefore, fee levied by the AO under section 234E of the Act while processing the statement of tax deducted at source was beyond the scope of adjustment provided under section 200A of the Act and be deleted the same the eye of law. The Amritsar Bench of the Tribunal in the case of Sibia Healthcare 2015 (6) TMI 437 - ITAT AMRITSAR has opined that the matter in question was if the fees u/s.234E in respect of defaults in furnishing TDS statement could be levied in intimation u/s.200A of the Act so far as period prior to 1.06.2015 was concerned. It was held that the impugned levy of fee u/s.234E was unsustainable in law. On perusal and analyzing the details , it is absolutely clear that prior to 1.6.2015, there was no enabling provision in section 200A of the Act for raising a demand in respect of levying fee u/s.234E of the Act. Therefore, we hold that the intimation u/s.200A of the Act as confirmed by the Ld. CIT so far as levying of fees u/s.234E of the Act is, therefore, set aside and the fees levied is deleted. Ground raised by the assessee is allowed.
Issues Involved:
1. Imposition of late filing fee under Section 234E of the Income Tax Act, 1961. 2. Validity of levy of late fee under Section 234E prior to 01.06.2015. 3. Jurisdiction of the Assessing Officer to levy fees under Section 234E while processing statements under Section 200A. Detailed Analysis: 1. Imposition of Late Filing Fee under Section 234E of the Income Tax Act, 1961: The primary grievance across all appeals is the imposition of late filing fees under Section 234E of the Income Tax Act, 1961. The assessees contended that prior to 01.06.2015, there was no provision for levying such fees. The Tribunal noted that this issue had been adjudicated in several cases, including ITA Nos. 117 to 120/RPR/2015, among others, where it was observed that the levy of fees under Section 234E was not permissible before the specified date. 2. Validity of Levy of Late Fee under Section 234E Prior to 01.06.2015: The Tribunal referred to the case of Sibia Healthcare Private Limited Vs. DCIT, where it was held that the levy of fees under Section 234E was unsustainable in law prior to 01.06.2015. The Tribunal noted that various High Courts, including those of Kerala, Karnataka, Rajasthan, and Bombay, had stayed the demand for fees under Section 234E, questioning its constitutional validity. The Tribunal emphasized that Section 200A, as it stood before the amendment effective from 01.06.2015, did not provide for the levy of fees under Section 234E. 3. Jurisdiction of the Assessing Officer to Levy Fees under Section 234E While Processing Statements under Section 200A: The Tribunal examined the statutory provisions of Section 200A and Section 234E. It was noted that Section 200A, before its amendment by the Finance Act 2015 (effective from 01.06.2015), did not authorize the computation and levy of fees under Section 234E during the processing of TDS statements. The Tribunal highlighted that the scope of adjustments under Section 200A was limited to arithmetical errors and incorrect claims apparent from the information in the statement. Since the levy of fees under Section 234E was not within the permissible adjustments under Section 200A before 01.06.2015, such a levy was beyond the jurisdiction of the Assessing Officer. The Tribunal concluded that the levy of fees under Section 234E by way of intimation under Section 200A was not justified before 01.06.2015. Consequently, the Tribunal set aside the orders of the CIT(Appeals) and allowed the appeals of the assessees, quashing the impugned demands for late filing fees under Section 234E. Conclusion: The Tribunal, after considering the facts, statutory provisions, and judicial precedents, held that the imposition of late filing fees under Section 234E before 01.06.2015 was not permissible. The appeals of the assessees were allowed, and the orders of the CIT(Appeals) were set aside. Order Pronounced: The appeals were allowed, and the order was pronounced on the 31st day of January, 2019.
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