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TMI Blog2016 (3) TMI 455X X X X Extracts X X X X X X X X Extracts X X X X ..... order passed by the Dy.Comm.of Income Tax, Centralized Processing Cell-TDS, Ghaziabad, U.P. u/s.200A of the Income Tax Act, 1961 vide Comm. ref.No.TDS /1314/26Q/D/100008916681 dtd. 19/05/2014 in respect of Form No.26Q filed by the Appellant for quarter -3 of F.Yr.2013-14 which is illegal and bad in law. Hence the same should be cancelled. 2. The learned Commissioner of Income Tax (Appeals) has erred in confirming the action of the Dy.Comm.of Income Tax, Centralized Processing Cell-TDS, Ghaziabad, U.P. in passing intimation order u/s.200A of the I.T. Act, 1961 without giving show cause notice to the appellant. Hence the order so passed without giving an opportunity of being heard to the appellant being against the principles of natural j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bad) in the case(s) of Tanish Industries Pvt.Ltd. v. DCIT & Irfan Iqbalbhai Ajmerwala vs. DCIT in ITA Nos.2296 & 2297/Ahd/2015 respectively for AY 2014-15, dated 30/11/2015. He submitted that the assessee preferred an appeal against the levy of late filing fee u/s.234-E of the I.T. Act before the ld.CIT(A), who dismissed the appeal vide order dated 01/09/2015. 5. We have heard the representatives of the respective parties and perused the material available on record. The only issue involved in this appeal is whether the late filing fee of TDS return u/s.234-E can be levied prior to 01/06/2015. This issue has been thoroughly examined by the Coordinate Bench in the case of Siddhi Vinayak Developers vs. DCIT(supra) and held as under:- "5. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, 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) Without prejudice to the provisions of the Act, where a person fails to deliver or cause to be delivered a statement within the time prescrib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... king 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 specifying the sum determined to be payable by, or the amount of refund due to, him under clause (c); and (e) the amount of refu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 made in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 passed within ..... X X X X Extracts X X X X X X X X Extracts X X X X
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