9911796707
TMI Blog2015 (6) TMI 437X X X X Extracts X X X X X X X X Extracts X X X X ..... E. That is not the issue here. - as the law stood, prior to 1st June 2015, there was no enabling provision u/s 200A for raising a demand in respect of levy of fees under section 234E. The issue is whether such a levy could be effected in the course of intimation under section 200A. The answer is clearly in negative. No other provision enabling a demand in respect of this levy has been pointed out to us and it is thus an admitted position that in the absence of the enabling provision under section 200A, no such levy could be effected. As intimation under section 200A, raising a demand or directing a refund to the tax deductor, can only be passed within one year from the end of the financial year within which the related TDS statement is f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e question as to whether or not, so far as period prior to 1st June 2015 is concerned, fees under section 234 E of the Income Tax Act 1961 (hereinafter referred to as the Act ), in respect of defaults in furnishing TDS statements, could be levied in intimation under section 200A of the Act. It is on this short issue, and for the reasons we will set out in a short while, we propose to decide these appeals. 3. To adjudicate on these appeals, only a few material facts need to be taken note of. It is a case in which there was admittedly a delay in filing of the TDS returns. In the course of the processing of the TDS return, the Assessing Officer (TDS) raised a demand, by way of an intimation dated 9th September 2013 issued under section 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this appeal on merits. 5. We may produce, for ready reference, section 234E of the Act, which was inserted by the Finance Act 2012 and was brought into effect from 1st July 2012. This statutory provision is as follows: 234E. Fee for defaults in furnishing statements (1) Without prejudice to the provisions of the Act, where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to subsection (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues. (2) The amount of fee referred to in sub-section (1) shall not exceed the amount of tax deductible or collectible, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fund due to, the deductor shall be determined after adjustment of amount computed under clause (b) against any amount paid under section 200 and section 201, and any amount paid otherwise by way of tax or interest; (d) an intimation shall be prepared or generated and sent to the deductor specifying the sum determined to be payable by, or the amount of refund due to, him under clause (c); and (e) the amount of refund due to the deductor in pursuance of the determination under clause (c) shall be granted to the deductor: Provided that no intimation under this sub-section shall be sent after the expiry of one year from the end of the financial year in which the statement is filed. Explanation : For the purposes of this sub-section, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ifying the sum determined to be payable by, or the amount of refund due to, him under clause (d); and (f) the amount of refund due to the deductor in pursuance of the determination under clause (d) shall be granted to the deductor. 8. In effect thus, post 1st June 2015, in the course of processing of a TDS statement and issuance of intimation under section 200A in respect thereof, an adjustment could also be made in respect of the fee, if any, shall be computed in accordance with the provisions of section 234E . There is no dispute that what is impugned in appeal before us is the intimation under section 200A of the Act, as stated in so many words in the impugned intimation itself, and, as the law stood, prior to 1st June 2015, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the course of intimation under section 200A. The answer is clearly in negative. No other provision enabling a demand in respect of this levy has been pointed out to us and it is thus an admitted position that in the absence of the enabling provision under section 200A, no such levy could be effected. As intimation under section 200A, raising a demand or directing a refund to the tax deductor, can only be passed within one year from the end of the financial year within which the related TDS statement is filed, and as the related TDS statement was filed on 19th February 2014, such a levy could only have been made at best within 31st March 2015. That time has already elapsed and the defect is thus not curable even at this stage. In view of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
