2018 (8) TMI 1633 - AT - Income Tax

Rectification of mistake - Levy of fees U/s 234E - Intimation of the demand notices U/s 200A - Late filing fee under Section 234E - non consideration of earlier decision in case of Mentor India Limited vs. DCIT and others 2016 (12) TMI 1648 - ITAT JAIPUR - Held that - As the earlier decision in case of Mentor India Limited vs. DCIT and others (supra) dated 16.12.2016 and hence, non consideration of the decision of the Coordinate Bench is a mistake which is apparent from record which call for rectification U/s 254(2) of the Act. In view of none consideration of the earlier decision passed by the Coordinate Bench dated 16.12.2016, the impugned order passed by the Coordinate Bench dated 17.04.2017 is hereby recalled for considering the earlier decision passed by the Coordinate Bench and the Registry is directed to fix the matter for hearing in due course - miscellaneous application filed by the assessee is allowed

Summary

Issues:
1. Consideration of judgments by Coordinate Bench in imposition of fees for late filing of TDS statement under section 234E of the Act.
2. Rectification under section 254(2) of the Act based on non-consideration of earlier decision by Coordinate Bench.

Analysis:

Issue 1: Consideration of Judgments by Coordinate Bench
The assessee filed a miscellaneous application against the order of the Coordinate Bench in ITA No. 14/JP/2017 regarding the imposition of fees for late filing of TDS statement under section 234E of the Act. The assessee argued that the Coordinate Bench erred in relying on judgments regarding the constitutional validity of section 234E, as the issue at hand was the power of the AO to levy fees. The assessee cited decisions by the Coordinate Bench in favor of other companies, emphasizing that the Coordinate Bench's non-consideration of these judgments was a mistake. The ld. DR contended that the Coordinate Bench correctly relied on the jurisdictional High Court's order in a similar case. The Tribunal noted that the Coordinate Bench in a previous case had allowed the appeal of an assessee on similar grounds, emphasizing that conflicting views should favor the assessee. The Tribunal directed the recall of the impugned order for reconsideration based on the earlier decision by the Coordinate Bench, highlighting the mistake in non-consideration of the previous judgment.

Issue 2: Rectification under Section 254(2) of the Act
The Tribunal found that the Coordinate Bench's failure to consider the earlier decision in a similar case constituted a mistake apparent on the record, warranting rectification under section 254(2) of the Act. The Tribunal recalled the impugned order and directed a rehearing to include the earlier decision by the Coordinate Bench. Consequently, the miscellaneous application filed by the assessee was allowed with the specified directions. The order was pronounced in the open court on 21/08/2018.

This detailed analysis of the judgment highlights the arguments presented by the parties, the Tribunal's consideration of relevant case law, and the decision to recall the impugned order for further review based on the non-consideration of the earlier decision by the Coordinate Bench.