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TMI Blog2016 (3) TMI 406X X X X Extracts X X X X X X X X Extracts X X X X ..... DR ORDER The assessee is in appeal against the order of the ld.CIT(A)-I, Ahmedabad dated 24.8.2015 passed for the Asstt.Year 2013-14. 2. Solitary grievance of the assessee is that the ld.CIT(A) has erred in confirming the levy of fee under section 234E of the Income Tax Act amounting to ₹ 7,600/- for F.Y.2012-13. 3. With the assistance of the ld. representatives, we have gone through the record carefully. The assessee has submitted TDS return late. There is no dispute to that extent. But, the ITAT, Amristar Branch in the case of Sibia Healthcare Pvt. Ltd. Vs. DCIT, ITA No.90/Asr/2015 order dated 9.6.2015 has held that while processing under section 200A, the AO was not empower to charge fee under section 234E. This orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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) 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts, 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 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 de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o, 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 statement and issuance of intimation under section 200A in respect thereof, an adjustment could also be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, 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 section 200A, raising a demand or directing a refund to the tax deductor, can only be pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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