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2017 (1) TMI 261 - AT - Income TaxLevy of fees under section 234E in intimation issued under section 200A(1) - default in furnishing the TDS statements - Held that - As decided in Maharashtra Cricket Association Vs. DCIT(CPC)-TDS, Ghaziabad 2016 (10) TMI 104 - ITAT PUNE the amendment to section 200A(1) of the Act is procedural in nature and in view thereof, the Assessing Officer while processing the TDS statements / returns in the present set of appeals for the period prior to 01.06.2015, was not empowered to charge fees under section 234E of the Act. Hence, the intimation issued by the Assessing Officer under section 200A of the Act in all these appeals does not stand and the demand raised by way of charging the fees under section 234E of the Act is not valid and the same is deleted. The intimation issued by the Assessing Officer was beyond the scope of adjustment provided under section 200A of the Act and such adjustment could not stand in the eye of law. - Decided in favour of assessee
Issues Involved:
1. Condonation of delay in filing the appeal. 2. Charging of fees under section 234E of the Income Tax Act, 1961. 3. Maintainability of appeal against intimation issued under section 200A of the Income Tax Act, 1961. Issue-wise Detailed Analysis: 1. Condonation of Delay in Filing the Appeal: The appeal was filed after a delay of 14 days. The assessee submitted an application along with an affidavit explaining the reasons for the delay. Considering the facts and circumstances, the delay was condoned, and the appeal was taken on record. 2. Charging of Fees under Section 234E of the Income Tax Act, 1961: The primary issue in the appeal was the levy of fees under section 234E of the Act for default in furnishing TDS statements. The Tribunal referred to the earlier order in Maharashtra Cricket Association Vs. DCIT(CPC)-TDS, Ghaziabad, which held that the power to charge fees under section 234E while processing TDS statements was given to the Assessing Officer only with the insertion of clause (c) to section 200A(1) by the Finance Act, 2015, effective from 01.06.2015. Prior to this amendment, the Assessing Officer did not have the authority to levy such fees while processing TDS returns. Therefore, for periods before 01.06.2015, the levy of fees under section 234E was not valid. The Tribunal concluded that since the assessment year in question was 2013-14, the imposition of fees under section 234E was not permissible, and thus, the levy of fees amounting to ?20,200/- was deleted. 3. Maintainability of Appeal Against Intimation Issued Under Section 200A: The Tribunal examined whether an appeal is maintainable against the intimation issued under section 200A of the Act. The Memorandum explaining the Finance Bill, 2015, clarified that an intimation generated after processing TDS statements is appealable under section 246A of the Act and subject to rectification under section 154 of the Act. The Tribunal held that the intimation issued by the Assessing Officer is an appealable order under section 246A(1)(a) and (c) of the Act, and thus, the CIT(A) should have examined the legality of the adjustment made under the intimation issued under section 200A. Consequently, the Tribunal reversed the CIT(A)'s findings, confirming that the appeal against the intimation was maintainable. Conclusion: The Tribunal allowed the appeal filed by the assessee, holding that the Assessing Officer was not empowered to charge fees under section 234E of the Act for the period prior to 01.06.2015 while processing TDS returns. The levy of fees amounting to ?20,200/- was deleted, and the appeal was deemed maintainable. The grounds of appeal raised by the assessee were thus allowed.
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