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TMI Blog2016 (1) TMI 866X X X X Extracts X X X X X X X X Extracts X X X X ..... rm No.26Q relevant to the F.Y.2012-13. The assessee has submitted TDS statement under section 200(3). These statements were filed by the assessee beyond the prescribed due date. The ld.AO who processed these returns imposed penalty of Rs. 4,000/- each in respect of A.No.331 & 332 which pertained to Quarter No.3. 3. Dissatisfied with charging of late fee under section 234E, the assessee filed appeal before the ld.CIT(A). The ld.CIT(A) has decided four appeals of the assessee pertained to different quarters. The ld.CIT(A) has allowed the appeal with respect to A.No.331 and 333, but confirmed the levy of fees with regard to two quarters. 4. Before us, the ld.counsel for the assessee submitted that the issue in dispute is squarely covered by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld that while processing the TDS return under section 200A, the AO was not authorized to make adjustment by raising the demand under section 234E also. The discussions made by the Tribunal are as under: "5. I find that the issue in appeal is now squarely covered in favour of the assessee by the decision of ITAT Amritsar Bench in the case of Sibia Healthcare Private Limited vs. DCIT - ITA No.90/Asr/2015, vide order dated 9th June, 2015, wherein the Division Bench has inter alia observed as under :- "4. We have heard the rival contentions, perused the material on record and duly considered facts of the case in the light of the applicable legal position. In addition to his argument on the merits, learned counsel has also invited our attent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the case may be. (3) The amount of fee referred to in sub-section (1) shall be paid before delivering or causing to be delivered a statement in accordance with sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C. (4) The provisions of this section shall apply to a statement referred to in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C which is to be delivered or caused to be delivered for tax deducted at source or tax col ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, "an incorrect claim apparent from any information in the statement" shall mean a claim, on the basis of an entry, in the statement- (i) of an item, which is inconsistent with another entry of the same or some other item in such statement; (ii) in respect of rate of deduction of tax at source, where such rate is not in accordance with the provisions of this Act; (2) For the purposes of processing of statements under subsection (1), the Board may make a scheme for centralised processing of statemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E". 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 was no enabling provision therein for raising a demand in respect of levy of fees under section 234E. While examining the correctness of the intimation under section 200A, we have to be guided by the limited mandate of Section 200A, which, at the relevant point of time, permitted computation of amount recoverable from, or payable to, the tax deductor after making the following adjustments: (a). after making adjustment on account of "arithmetical errors" and "incorrect claims apparent from any information in the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 these discussions, as also bearing in mind entirety of the case, the impugned levy of fees under section 234 E is unsustainable in law. We, therefore, uphold the grievance of the assessee and delete the impugned levy of fee under section 234E of the Act. The assessee gets the relief accordingly." 6. When the above judicial precedent was brought to the notice of the ld. Departmental Representative, he did not have much to say except to place his reliance on the orders of the authorities below. He fairly did not disput ..... X X X X Extracts X X X X X X X X Extracts X X X X
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