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TMI Blog2018 (12) TMI 1318X X X X Extracts X X X X X X X X Extracts X X X X ..... t by levying fee under Section 234E of the Act with effect from 01.06.2015. See SMT. G. INDHIRANI, SALEM, RAJAGURU SPINNING MILLS LTD., A. DHAKSHINAMURTHY , PADMA TEXTILES & MURTHY LUNGI COMPANY VERSUS THE DEPUTY COMMISSIONER OF INCOME TAX, CPC – TDS, TDS – CPC, UTTAR PRADESH [2015 (7) TMI 640 - ITAT CHENNAI] As held by this ITAT, the intimation sent to the assessee u/s. 200A dated 16.01.2014 raising the demand of ₹ 9,000/- u/s. 234E towards levy of late filing fee is invalid as there was no enabling provision in section 200A, viz., clause (1)(C) of section 234E, prior to 01.06.2015 for levy of fees u/s. 234E while processing the statement of tax deducted at source. It was open for the AO to pass separate order u/s. 234E levying th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 4. The assessee had filed written submissions dated 06.08.2018 before this Tribunal, wherein assessee had submitted the following points for our consideration. WRITTEN SUBMISSION OF THE APPELLANT. Our appeal is reposted for hearing on 03-10-2018. In addition to the grounds of appeal, your appellant wish to submit the following written submission. It relates to the assessment year 2013-2014. The only issue in this appeal is whether the assessing authority can levy fee u/s. 234E while processing the statement u/s. 200A prior to 01-06-2015. 234E is only an enabling provision to levy fee for the failure to file the statement as contemplated u/s 200(3). No order can be passed u/s 234E. But the statement should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt held as follows:- 19. In plain terms, section 200A of the Act is a machinery provision providing mechanism for processing a statement of deduction of tax at source and for making adjustments, which are, as noted earlier, arithmetical or prima-facie in nature. With effect from 01.06.2015, this provision specifically provides for computing the fee payable u/s.234E of the Act. On the other hand, section 234E is a charging provision creating a charge for levying fee for certain defaults in filing the statements. Under no circumstances a machinery provision can override or overrule a charging provision. We are unable to see that section 200A of the Act creates any charge in any manner. It on)y provides a mechanism for processing a statem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 200A of the Act is rectifiable under section 154 of the Act and is also appealable under section 246A. In absence of the power of authority to make such adjustment under section 200A of the Act, any calculation of the fee would not partake the character of the intimation under said provision and it could be argued that such an order would not be open to any rectification or appeal. Upon introduction of the recasted clause (c), this situation also would be obviated. Even prior to 01.06.2015, it was always open for the Revenue to calculate fee in terms of section 234E of the Act. The Karnataka High Court in case of Fatheraj Singhvi [2016] (73 taxmann.com 252) held that section 200A was not merely a regulatory provision, but was confer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levy of interest u/s.234E of the Act has not been rejected, but it has been said that such levy has been made by passing a separate order provided the limitation for such levy is not expired. This is in respect of the period prior to 01.06.2015. Here we must also mention that this decision of the Co-ordinate Bench of this Tribunal in the case of Smt. G.Indhirani Vs.DCIT referred to supra has also been reiterated and followed the decision of G.Radhakrishnan in ITA No.526/Chny.2018 dated 30.07.2018. In the circumstances, respectfully following the decision of Co-ordinate Bench of this Tribunal in the case of Smt. G.Indhirani Vs.DCIT referred to supra and Shri G.Radhakrishnan Vs.DCIT referred to supra, on identical grounds, this Tribunal is o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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