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TMI Blog2019 (11) TMI 1225X X X X Extracts X X X X X X X X Extracts X X X X ..... le examining the correctness of the intimation u/s 200A, we have 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) 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 poi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ship firm which came into existence in July, 2012. Tax deduction at source amounting to ₹ 34,486/- was made for the first time in the fourth quarter of the financial year 2012-13 and the payment for the same was made on 26.4.2013 i.e. before the due date. However, the filing of the return of TDS was delayed and it was filed on 12th September, 2013 instead of the due date of 15th May, 2013. A fee of ₹ 24,000/- u/s 234E of the Income Tax Act, 1961 (hereinafter called the Act ) @ ₹ 200/- for the delay of 120 days was charged as per intimation u/s 200A of the Act vide intimation dated 11th February, 2014. The assessee preferred an appeal before the first appellate authority against the levy of the late fee. The Ld. First appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd submitted that the fee had been correctly levied. 6.0 We have gone through the written submissions and the case laws relied upon by the assessee and have also heard the Sr. DR and have also gone through the impugned order. 6.1 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 the proviso to subsection (3) of section 206 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, shall be computed n 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 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 b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubstituted 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 all 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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law as it existed at that point of time. In view of the above, 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 Ld. CIT (A) ought to have examined the legality of the adjustment made under this intimation in the light of the scope of the section 200A. The 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 p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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