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TMI Blog2020 (7) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... sions of Section 234E or Section 200A of the Act. Only if the A.O. has failed to comply with the mandatory provisions of these Sections while making the adjustment and issuing the intimation, the same can be challenged in the appeal. In absence of any such allegation that the A.O. has violated any of the provisions of Section 234E or Section 200A of the Act, the adjustment made by the A.O. on account of late filing fee U/s 234E of the Act cannot be deleted.- Decided against assessee. - ITA No. 964/JP/2019 - - - Dated:- 24-6-2020 - Shri Vijay Pal Rao, JM And Shri Vikram Singh Yadav, AM For the Assessee : Shri Yogesh Kr. Sharma (CA) For the Revenue : Ms. Chanchal Meena (Addl.CIT) ORDER PER: VIJAY PAL RAO, J.M. This appeal by the assessee is directed against the order dated 17/06/2019 of ld. CIT(A)-3, Jaipur for the Financial Year 2017-18 (24Q 1st Quarter) arising from the levy of late fee U/s 234E of the Income Tax Act, 1961 (in short, the Act) while issuing the intimation U/s 200A of the Act dated 19/06/2018. The assessee has raised following grounds of appeal: 1. That on the facts and in the circumstances of the case, the Ld. Commissioner of Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic. No other balances or assets in the name of the Appellant except these specified reserve fund. That as per the above situation the payment of such late fee amount would cause genuine hardship to the Appellant. There is no default in deposition of TDS as per applicable rates. The Appellant has already co-operated in each inquiry relating to the assessment or any proceeding for the recovery of any amount due from him. If the burden of such amount goes on the Appellant, than it would cause genuine hardship to the Appellant. It means it would be difficult to the Appellant to arrange such late fees amount because that the Appellant not having neither assets nor fund to clear such amount. 2. That on the facts and in the circumstances of the case, the Ld. Commissioner Of Income Tax (Appeals) has erred in sustaining the levy of penalty U/S 234E. Ld. CIT has not only failed to consider and appreciate the explanation given by the appellant in respect of the addition of ₹ 63,000/- whereas the assessee is the Rajasthan State Government Department in the name and style GOVERNMENT SECONDARY SCHOOL, TOOMLIKABAS, Chaksu to that the assessee is the Rajasthan State Gover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce the TDS statement has been accepted without late fees and then such late fee cannot be recovered later on. In the view of the above, late fee cannot be recovered later on by way of any notice, no notice of demand U/s 156 can be issued for this. 6. That the Ld. Commissioner of Income Tax (Appeals) has failed to appreciate that the Provisions of Sec.204 of the Act has made the person responsible for Sec. 190 to Sec. 203AA and Sec.285, this phrase does not cover Sec.234E, it means no one is responsible for default U/s 234E of the Act. It s also clears that if late fees are due but not deposited along with the TDS statement anyone cannot be held responsible to deposit it later on. That the order of the Ld. Commissioner of Income Tax (Appeals) is arbitrary, against the facts and circumstances of the case, illegal and be therefore quashed outright. 7. That the Ld. Commissioner of Income Tax (Appeals) has failed to appreciate that the sec.200A of the Act does not permit processing of TDS statement for default in payment of late fees, except any arithmetical error, or incorrect claim, or default in payment of interest and TDS payable or refundable etc. Hence late fees for TDS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e primary work and necessary in the public interest. He has further pointed out that during the relevant period, the work of TDS was under the charge of physical teacher (PTI), who was engaged in the school tournaments and sport activities from the month of July to September, 2018. Further in the month of July, 2018, a peon was promoted to the post of LDC and therefore, he was not aware with the rules and procedure of filing the quarterly TDS statement. Due to all these unavoidable circumstances, there was a delay in filing the quarterly TDS statement for Quarter No. 1 of F.Y. 2017-18. However, neither in past nor in future, there was any lapse on the part of the school authorities in submitting the quarterly TDS statement. Thus, the ld AR has submitted that when the assessee has explained sufficient and reasonable cause for delay in submitting the quarterly TDS statement then the levy of late filing fee is not justified. He has further submitted that the ld. CIT(A) has failed to appreciate the reasons explained by the assessee and prevailing circumstances under which there was a delay in submitting the quarterly statement. Thus, the ld AR has pleaded that this is only a default on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce with the foregoing provisions of this Chapter or, as the case may be, any person being an employer referred to in sub-section (1A) of section 192 shall, after paying the tax deducted to the credit of the Central Government within the prescribed time, 24 [prepare such statements for such period as may be prescribed] and deliver or cause to be delivered to the prescribed income-tax authority 25 or the person authorised by such authority such statement in such form 26 and verified in such manner and setting forth such particulars and within such time as may be prescribed:] [Provided that the person may also deliver to the prescribed authority a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement delivered under this sub-section in such form and verified in such manner as may be specified by the authority.] The quarterly TDS statement as well as annual TDS returns are required to be processed U/s 200A of the Act which reads as under: Processing of statements of tax deducted at source. 200A. (1) Where a statement of tax deduction at source 12 [or a correction statement] has been made by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if any to be computed in accordance with the provisions of Section 234E of the Act. Therefore, in case, there is a default or delay in submitting the TDS statements, a late fee is levied as contemplated U/s 234E of the Act and the A.O. while processing the statements of TDS shall make the adjustment on this account. Thus, so far as the nature of levy U/s 234E of the Act is concerned, it is mandatory in nature and the A.O. has no discretion to take its own decision but he has to make the adjustment on account of levy of late fee as provided U/s 234E of the Act in case there is a delay in submitting the TDS statement. The levy has to be computed in accordance with the rate prescribed U/s 234E of the Act. 7. As far as merit of the appeal is concerned, we do not find any substance or merit in this appeal as the delay in filing the quarterly statement is accepted by the assessee. The only plea raised by the assessee before the ld. CIT(A) as well as before us is the explanation for such delay in filing quarterly statement. However, since the levy of late fee as prescribed U/s 234E of the Act is mandatory and consequential, therefore, the same cannot be deleted on the ground of reasona ..... X X X X Extracts X X X X X X X X Extracts X X X X
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