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TMI Blog2016 (2) TMI 890X X X X Extracts X X X X X X X X Extracts X X X X ..... The ld.counsel for the assessee submitted that the demand of late fee cannot be raised by way of processing of TDS statement, because provision of section 200A of the Act does not cover default in payment of late fees, except any arithmetical error etc. and therefore, revenue authorities are not justified in imposing levy penalty of Rs. 200/- per day or equal to TDS paid amounting to Rs. 81,280/-. It is further submitted that the assessee has made all timely payments to the Department and discharged his financial liability and only small mistake on the part of the assessee was a mere late intimation to the government about timely payment of tax being paid. The ld.counsel for the assessee further brought to my notice orders of the ITAT, Ahme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 attention to the reports about the decisions of various Hon'ble High Courts, including Hon'ble 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (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 collected at source, as the case may be, on or after the 1st day of July, 2012. 6. We may also reproduce the Section 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th 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 statements of tax deducted at source to expeditiously determine the tax payable by, or the refund due to, the deductor as required 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), t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 statement" - Section 200A(1)(a) (b). after making adjustment for 'interest, if any, computed on the basis of sums deductible 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 cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee and delete the impugned levy of fee under section 234E of the Act. The assessee gets the relief accordingly." 5. 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 dispute that the provisions accepting levy of late filing fees under section 234E have indeed been brought to the statute w.e.f. 1st June, 2015 and the impugned order was passed much before that date. 6. In view of the above discussions and bearing in mind entirety of the case, we hereby delete the levy of late filing fees under section 234E of the Act by way of impugned intimation issued on 11.12.2013. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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