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2016 (10) TMI 92 - AT - Income TaxLevy of fees under section 234E in intimation issued under section 200A(1) - whether any appeal is maintainable against the intimation issued under section 200A of the Act and / or order passed under section 154 r.w.s. 200A of the Act by Assessing Officer in charging the fees under section 234E of the Act? - Held that - The Legislature recognizes that a deductor who has filed his statement of tax deducted at source which in turn has been processed by the Assessing Officer and intimation is generated under which if any amount is found to be payable then such intimation generated after processing of TDS returns is subject to rectification under section 154 of the Act and / or is also appealable under section 246A of the Act since the demand issued by the Assessing Officer is deemed to be a notice of payment under section 156 of the Act. Since the intimation in question issued by the Assessing Officer was appealable order under section 246A(1)(a) of the Act therefore the CIT(A) should have examined the legality of adjustment made under intimation issued under section 200A of the Act. The CIT(A) has rejected the present set of appeals on the surmise that first of all no appeal is provided against the intimation issued under section 200A of the Act. Further the CIT(A) has also decided the issue on merits and the assessee is in appeal before us on both these grounds. Vis- -vis the first issue of maintainability of appeal against the intimation issued under section 200A of the Act we hold that such intimation issued by the Assessing Officer after processing the TDS returns is appealable. The demand raised by way of charging of fees under section 234E of the Act is under section 156 of the Act and any demand raised under section 156 of the Act is appealable under section 246A(1)(a) and (c) of the Act. Accordingly we reverse the findings of CIT(A) in this regard. Once intimation issued under section 200A(1) of the Act is appealable order before the CIT(A) under section 246A(1)(a) of the Act then such appealable order passed by the CIT(A) under section 250 of the Act is further appealable before the Tribunal under section 253 of the Act. Hence we admit the present appeals filed by the assessee even on this preliminary issue. We have already adjudicated the issue of charging fees under section 234E of the Act by the Assessing Officer while processing returns / statements in the paras hereinabove and in view thereof we hold that the Assessing Officer is not empowered to charge the fees under section 234E of the Act by way of intimation issued under section 200A of the Act in respect of defaults before 01.06.2015 we allow the claim of assessee on both the aspects. The grounds of appeal raised by the assessee are thus allowed.
Issues Involved:
1. Delay in Filing Appeals 2. Charging of Fees under Section 234E 3. Maintainability of Appeals 4. Retrospective vs. Prospective Application of Amendments Detailed Analysis: 1. Delay in Filing Appeals: There was a delay of 3 days in filing appeals in certain cases (ITA No.1337/PN/2015 to ITA No.1339/PN/2015). The tribunal condoned the delay after considering the condonation petition and admitted the appeals for adjudication. 2. Charging of Fees under Section 234E: The core issue was whether fees under section 234E could be charged prior to the amendment to section 200A(1)(c) of the Act, which came into effect on 01.06.2015. The tribunal noted that the amendment was not retrospective and the Assessing Officer did not have the power to levy fees under section 234E while processing TDS returns before 01.06.2015. The tribunal held that the enabling provision to charge fees under section 234E was introduced only from 01.06.2015 and could not be applied retrospectively. 3. Maintainability of Appeals: The tribunal addressed whether appeals against intimations issued under section 200A of the Act were maintainable. It was held that such intimations were indeed appealable under section 246A of the Act, as they were deemed notices of payment under section 156 of the Act. The tribunal reversed the CIT(A)'s finding that no appeal was maintainable against the intimation issued under section 200A. 4. Retrospective vs. Prospective Application of Amendments: The tribunal emphasized that the amendment to section 200A(1) by the Finance Act, 2015, which enabled the computation of fees under section 234E, was prospective and applicable from 01.06.2015. The tribunal relied on the principle that unless a contrary intention appears, legislation is presumed not to have retrospective operation. The tribunal also referred to the Hon'ble Supreme Court's decision in CIT Vs. Vatika Township Pvt. Ltd., which held that amendments beneficial to taxpayers are applied retrospectively, but not those that impose a new burden. Conclusion: The tribunal concluded that the Assessing Officer was not empowered to charge fees under section 234E while processing TDS returns prior to 01.06.2015. The appeals filed by the assessees were allowed, and the demands raised under section 234E were deleted. The tribunal also held that appeals against such intimations were maintainable and reversed the CIT(A)'s findings on this issue.
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