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2017 (8) TMI 1295 - AT - Income TaxNo levy of fees u/s 234E in intimation u/s 200A - delay in filing TDS statements - Held that - The intimations were processed prior to 01.06.2015 u/s 200A of the Act and no fee is leviable u/s 234E in the intimation passed u/s 200A because 1.7.2012 is the date of insertion of section 234E into the Income Tax Act, 1961 whereas 1.6.2015 is the date of amendment/substitution of clause (c) to section 200A vide which it has been provided that fees payable under section 234E can be adjusted . Therefore, respectfully following the said decisions of Concept Management Consulting Ltd. Versus DCIT-CPC-TDS, Uttar Pradesh 2016 (10) TMI 430 - ITAT MUMBAI we direct the Assessing Officer to delete the fee charged u/s 234E of the Act - Decided in favour of assessee.
Issues Involved:
1. Levy of fees under section 234E of the Income Tax Act, 1961. 2. Validity of adjustments made while processing TDS statements under section 200A of the Income Tax Act, 1961. 3. Applicability of the amendment to section 200A effective from 01.06.2015. Detailed Analysis: 1. Levy of Fees under Section 234E: The primary issue revolves around whether fees under section 234E for delays in filing TDS statements can be levied. The Department Representative (DR) argued that the levy of fees under section 234E is constitutionally valid, citing the decision in *Rashmikant Kundalia v. Union of India* [373 ITR 268]. The DR maintained that the delay in filing TDS statements justifies the levy of fees under section 234E. 2. Validity of Adjustments Made While Processing TDS Statements Under Section 200A: The Tribunal referred to the decision in *Concept Management Consulting Limited v. DCIT* and *M/s Kash Realtors P Ltd & others*, which held that no fee under section 234E is leviable in the intimation passed under section 200A prior to 01.06.2015. The Tribunal noted that the Amritsar Bench in *Sibia Healthcare Pvt. Ltd. vs. DCIT* ruled that adjustments for fees under section 234E could not be made under section 200A before 01.06.2015 due to the absence of an enabling provision. 3. Applicability of the Amendment to Section 200A Effective from 01.06.2015: The Tribunal emphasized that section 200A was amended effective from 01.06.2015 to include adjustments for fees under section 234E. Prior to this amendment, the Assessing Officer (TDS) did not have the authority to levy fees under section 234E while processing TDS statements. The Tribunal supported this view by referencing the Chennai Bench's decision in *Smt. G. Indhirani & Others vs. DCIT, CPC-TDS*, which stated that the AO could not levy fees under section 234E while processing statements under section 200A before 01.06.2015, although a separate order for such fees could be passed. Conclusion: The Tribunal concluded that the Assessing Officer exceeded his jurisdiction by making adjustments for fees under section 234E while processing TDS statements under section 200A before 01.06.2015. Consequently, the Tribunal directed the deletion of fees charged under section 234E in all the cases before it, thereby allowing the appeals of the assessee. Order Pronouncement: The order was pronounced in the open court on 30th June 2017, and all three appeals of the assessee were allowed.
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