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TMI Blog2015 (6) TMI 437X X X X Extracts X X X X X X X X Extracts X X X X ..... n respect of processing of TDS statements the third quarter of the financial year 2012-13. The appeal is time barred by 62 days but the assessee has filed a petition seeking condonation of this delay. Having perused the condonation petition and having rival contentions on the same, we are inclined to condone the delay and proceed to take up the matter on merits. Delay condoned. 2. During the course of this hearing, learned representatives were asked to address us on the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ranting stay on the demands raised in respect of fees under section 234E. The full text of these decisions were not produced before us. However, as admittedly there are no orders from the Hon'ble Courts above retraining us from our adjudication on merits in respect of the issues in this appeal, and as, in our humble understanding, this appeal requires adjudication on a very short legal issue, within a narrow compass of material facts, we are proceeding to dispose of 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) Witho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all be processed in the following manner, namely: (a) the sums deductible under this Chapter shall be computed after making the following adjustments, namely: (i) any arithmetical error in the statement; or (ii) an incorrect claim, apparent from any information in the statement; (b) the interest, if any, shall be computed on the basis of the sums deductible as computed in the statement; (c) the sum payable by, or the amount of refund 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 specify ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... computed in accordance with the provisions of section 234E; (d) the sum payable by, or the amount of refund due to, the deductor shall be determined after adjustment of the amount computed under clause (b) and clause (c) against any amount paid under section 200 or section 201 or section 234E and any amount paid otherwise by way of tax or interest or fee; (e) 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 (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 st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 200A. This intimation is an appealable order under section 246A(a), and, therefore, the CIT(A) ought to have examined legality of the adjustment made under this intimation in the light of the scope of the section 200A. Learned CIT(A) has not done so. He has justified the levy of fees on the basis of the provisions of Section 234E. That is not the issue here. 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 se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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