9911796707
TMI Blog2020 (8) TMI 402X X X X Extracts X X X X X X X X Extracts X X X X ..... law, the ld. CIT(A)-3 Jaipur has erred in deleting fee levied u/s 234E of the Income Tax Act 1961 on processing of eTDS statement (s) filed late in contravention to Section 200 for F.Y 2016-17 (Quarter-3) in contrary to Clause (c) to Section 200A(1) inserted by the Finance Act 2015 w.e.f 01.06.2015? 2. Whether under the facts and circumstances of the case and the law, the application of provisions of Section 234E by the Assessing Officer (TDS) and/or CPC-TDS authority for levy of fee mandatorily on processing of eTDS statement(s) including correction statement(s) filed late by the assessee deductor after 01.06.2015 is invalid and ultra vires even on insertion of Clause (c) to Section 200A(1) of the Income Tax Act 1961 by the Finance Act 2015? 3. Whether in the facts of the case and in the law, the fee levied u/s 234E is distinguishable of a penalty as referred to in Chapter -XXI and whether it is an adjustment making in eTDS statement appealable u/s 246A of the Income Tax Act 1961?" 4. During the course of hearing, the ld DR submitted that the assessee deductor has filed on TRACES online the TDS statement in Form-24Q for 3rd quarter of F.Y 2016-17 on 11.03.2017 during the F.Y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the provision of Section 234E, the constitutional validity and applicability of the Section has been challenged before the various Hon'ble High Courts and finally before the Hon'ble Supreme Court who have held the provisions of Section 234E as constitutionally valid and applicable for the late filing of TDS statement(s). 7. It was submitted by the ld DR that contrary to the above provisions of the Act, the ld. CIT (A) has deleted the fee u/s 234E read with 200A(1)(c) by treating the fee as penalty and an adjustment made in the TDS statement(s). As per the provisions of Section 246A(1), fee levied u/s 234E, is neither a penalty as referred to in Chapter- XXI nor an adjustment made u/s 200A(1)/206CB(1), is provided as an appealable order and thus, the order of the ld. CIT (A) is not acceptable and it is against the provisions of Section 200A(1)(c) of the Act. 8. It was submitted by the ld DR that considering the facts of the case and fee levied u/s 234E, it is submitted that the ld. CIT(A) has erred in deleting the fee levied for late filing of e-TDS statement (quarter-3) of F.Y 2016-17 in contravention to the provisions of Section 200A(1)(c) which is mandatory in nature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal filed by the Revenue is covered by the exception 10(a) of the Board Circular No. 3/2018 dated 11.07.2018 and Para 10 of the said circular as amended vide CBDT communication dated 20th August, 2018 (f No. 279/Misc. 142/2007-ITJ(Pt) which reads as under:- "2. The monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court have been revised by Board's Circular No. 3 of 2018 dated 11.07.2018. 3. Para 10 of the said Circular provides that adverse judgments relating to the issues enumerated in the said para should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 thereof or there is no tax effect. Para 10 of the Circular No. 3 of 2018 dated 11.07.2018 is hereby amended as under:- "10. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect. (a) Where the Constitutional validity of the provisions of an Act or Rule is under challenge, or (b) Where Board's order, Not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, as far as Para 10(a) of the CBDT Circular no. 3 of 2018 as amended is concerned, the exception carved out therein is not applicable in the present case. 15. Now, coming to the second exception 10(e) which has been referred by the ld DR. The ld DR has contended that fee u/s 234E has been levied basis the information and processing of TDS statement by Central Processing Centre, which is an external agency and therefore, the said exception is applicable in the instant case. 16. We find that exception 10(e) to the aforesaid CBDT Circular relates to cases where addition is based on information received from external sources in the nature of law enforcement agencies such as CBI/ ED/ DRI/ SFIO/ Directorate General of GST Intelligence (DGGI). In the instant case, the assessee has filed his TDS statement on TRACES which is an IT platform managed and run by the Tax Department and thereafter, the said statement has been processed centrally by Central Processing Centre which is again manned by the personnel of the Tax department and finally, intimation u/s 200A(1)(C) of the said processing has been issued duly signed by DCIT, CPCTDS Ghaziabad. As per the Revenue's own submission, DCIT, CP ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
