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2017 (3) TMI 1380 - 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 appeals. 2. Levy of fees under Section 234E of the Income-tax Act, 1961. 3. Appealability of intimation issued under Section 200A of the Income-tax Act, 1961. Detailed Analysis: 1. Condonation of Delay in Filing Appeals: The Tribunal noted that several appeals were filed belatedly by the assessees, with delays ranging from 3 to 40 days. The assessees attributed these delays to failures on the part of their Chartered Accountant/Accountant Clerk. The Tribunal condoned the delays, accepting the reasons provided and proceeded to adjudicate the appeals. 2. Levy of Fees under Section 234E: The primary issue in these appeals was the levy of fees under Section 234E for late filing of TDS statements, which was charged by the Assessing Officer (AO) while processing the TDS returns under Section 200A. The Tribunal examined the legislative amendments and held that the power to levy fees under Section 234E while processing TDS statements was introduced by the Finance Act, 2015, effective from 01.06.2015. The Tribunal emphasized that prior to this date, the AO did not have the authority to levy such fees while processing TDS returns. The Tribunal referenced multiple case laws, including the decision in Maharashtra Cricket Association Vs. DCIT and the judgment of the Karnataka High Court in Sri Fatheraj Singhvi & Ors Vs. Union of India & Ors, which supported the view that the amendment was prospective and not retrospective. Consequently, the Tribunal concluded that the levy of fees under Section 234E for periods prior to 01.06.2015 was invalid and deleted the demands raised by the AO in this regard. 3. Appealability of Intimation Issued under Section 200A: The Tribunal also addressed the issue of whether an intimation issued under Section 200A is appealable. The CIT(A) had held that such intimations were not appealable. However, the Tribunal disagreed, citing the Memorandum explaining the Finance Bill, 2015, which recognized that intimations generated after processing TDS statements are subject to rectification under Section 154, appealable under Section 246A, and deemed as notices of payment under Section 156. The Tribunal concluded that the intimation issued under Section 200A is indeed appealable and reversed the CIT(A)'s findings on this matter. The Tribunal supported its decision by referencing the judgment in M/s. Kash Realtors Pvt. Ltd. Vs. ITO, which held that appeals against such intimations are maintainable. Conclusion: The Tribunal allowed the appeals of the assessees, holding that the AO was not empowered to levy fees under Section 234E for periods prior to 01.06.2015, and that intimations issued under Section 200A are appealable. The Tribunal’s order was pronounced on 21st March 2017.
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