9911796707
TMI Blog2015 (10) TMI 2477X X X X Extracts X X X X X X X X Extracts X X X X ..... 15. 3. The brief facts are that Assessee was required to submit TDS statement u/s. 200 (3) of I.T. Act 1961. With regard to the 1st Quarter, it was to submit the statement by 15th July, 2013, however, it has submitted that statement on 28th May, 2014, thus there was a delay in the submission of the statement. The Department has processed the statement u/s. 200A and raised a demand of Rs. 41,005/- as a late fee charged u/s. 234E of the Income Tax Act. Under identical circumstances, the late fees of Rs. 45,530/- has been charged for the 2nd Quarter, Rs. 27,860 for the 3rd Quarter and Rs. 2600/- for the last Quarter. The Ld. First Appellate Authority has confirmed the charging of late fee u/s. 234E of the Act. The Assessee has challenged conf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kerala High Court, in the case of Narath Mapila LP School Vs Union of India [WP (C) 31498/2013(J)], Hon'ble Karanataka High Court in the case of Adithya Bizor P Solutions Vs Union of India [WP No. 6918-6938/2014(T-IT), Hon'ble Rajasthan High Court in the case of Om Prakash Dhoot Vs Union of India [WP No. 1981 of 2014] and of Hon'ble Bombay High Court in the case of Rashmikant Kundalia Vs Union of India [WP No. 771 of 2014], granting 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 un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 200A which was inserted by the Finance Act 2009 with effect from 1st April 2010. This statutory provision, as it stood at the relevant point of time, was as follows: 200A: Processing of statements of tax deducted at source (1) Where a statement of tax deduction at source, or a correction statement, has been made by a person deducting any sum (hereafter referred to in this section as deductor) under section 200, such statement shall 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quired under the said subsection. 7. By way of Finance Act 2015, and with effect from 1st June 2015, there is an amendment in Section 200A and this amendment, as stated in the Finance Act 2015, is as follows: In section 200A of the Income-tax Act, in sub-section (1), for clauses (c) to (e), the following clauses shall be substituted with effect from the 1st day of June, 2015, namely:- "(c) the fee, if any, shall be 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tible as computed in the statement". - Section 200A(1)(b) 9. No other adjustments in the amount refundable to, or recoverable from, the tax deductor, were permissible in accordance with the law as it existed at that point of time. 10. In view of the above discussions, in our considered view, the adjustment in respect of levy of fees under section 234E was indeed beyond the scope of permissible adjustments contemplated under 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 provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
