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2021 (2) TMI 1073 - AT - Income TaxPenalty u/s 234E - delay in filling of TDS return - intimation u/s 200A - HELD THAT - The filing of TDS statement has happened in year 2017 and thereafter, the same has been processed and intimation issued on 4.12.2017 under section 200A by ACIT-TDS levying late filing fees under section 234E - Assessing officer was thus well within his jurisdiction to levy fees under section 234E. Contention of the AR that since the TDS statement pertains to the period i.e for the financial year 2013-14(1st quarter) even though the same has been filed in the year 2017, the Assessing officer is not empowered to levy late filing fees under section 234E unable to be accepted as we find that at the time of processing of the TDS statement i.e. on 14.10.2017, the Assessing officer was empowered to levy such late filing fees, there is no provision to make a distinction between the TDS statements pertaining to period prior to 01.6.2015 and post such period and more, importantly, it will result in creating two classes of assessees who for the same default will suffer different penal consequences leading to unintended class discrimination which cannot be the intention of the legislature in absence of anything contrary provided under the statute. As relying on SHRI UTTAM CHAND GANGWAL 2019 (1) TMI 1355 - ITAT JAIPUR there is a continued default beyond 01.06.2015, therefore, following the aforesaid decision, the levy of fees under section 234E, which is levied for each day during which the default continues, is upheld for the period 01.06.2015 to the date of actual filing of the TDS statement and the balance late filing fees so levied is hereby deleted. In the result, the appeal of the assessee is partly allowed.
Issues:
1. Validity of the order u/s 200A dated 09.05.2019 for A.Y. 2014-15 (1st Qtr) 2. Challenge to the demand of &8377; 47,000/- under section 234E of the Act Issue 1: Validity of the order u/s 200A dated 09.05.2019 for A.Y. 2014-15 (1st Qtr) The appeal was filed against the order of the ld. CIT(A), Ajmer dated 09/05/2019 for A.Y. 2014-15 (1st Qtr). The ld. AR submitted that the TDS return was filed for the 1st quarter of F.Y. 2013-14 on 11th October, 2017, and a penalty of &8377; 47,000/- was imposed under section 234E by the ld. ACIT - TDS. The ld. CIT(A) upheld the penalty, stating that the adjustment made under section 200(A)(1)(c) in respect of the fee levied u/s 234E was valid. The AR challenged this, arguing that the amendment to S. 200A(1) w.e.f. 01.06.2015 impacted the jurisdiction of the concerned officer. The AR contended that prior to this amendment, there was no authority to levy fees under section 234E. The AR cited various cases to support this argument. Issue 2: Challenge to the demand of &8377; 47,000/- under section 234E of the Act The AR emphasized that the amendment in Section 200A of the Act w.e.f. 1.06.2015 conferred the competence to charge fees under section 234E, indicating that prior to this amendment, the Assessing officer lacked the authority to levy such fees. The AR argued that interpreting otherwise would apply a prospective enactment retrospectively, which is impermissible. The AR relied on several cases to support the contention that the Assessing officer was not empowered to levy fees for the period before 01.06.2015. The DR, however, argued that the ACIT-TDS was within jurisdiction to levy late filing fees under section 234E. The Tribunal noted that the amendment to section 200A is prospective, and prior to 01.6.2015, the Assessing officer did not have the power to charge fees under section 234E. The Tribunal held that the Assessing officer was within jurisdiction to levy fees under section 234E since the TDS statement was filed in 2017 and processed thereafter. The Tribunal rejected the argument that the officer lacked the authority to levy fees for the period before 01.6.2015. Citing a previous case, the Tribunal emphasized that the officer had jurisdiction to levy fees from 01.06.2015 onwards, regardless of the period to which the quarterly return pertained. The Tribunal upheld the levy of fees under section 234E from 01.06.2015 to the date of actual filing of the TDS statement, partially allowing the appeal.
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