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TMI Blog2021 (2) TMI 1073X X X X Extracts X X X X X X X X Extracts X X X X ..... filing fees under section 234E unable to be accepted as we find that at the time of processing of the TDS statement i.e. on 14.10.2017, the Assessing officer was empowered to levy such late filing fees, there is no provision to make a distinction between the TDS statements pertaining to period prior to 01.6.2015 and post such period and more, importantly, it will result in creating two classes of assessees who for the same default will suffer different penal consequences leading to unintended class discrimination which cannot be the intention of the legislature in absence of anything contrary provided under the statute. As relying on SHRI UTTAM CHAND GANGWAL [ 2019 (1) TMI 1355 - ITAT JAIPUR] there is a continued default beyond 01.06.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vid-19 Pandemic. 3. During the course of hearing, the ld. AR submitted that the assessee filled its TDS return (Form 24Q) for the 1st quarter for F.Y. 2013-14 on 11th October, 2017, for which the due date was 31st July 2013 which was extended to 31st March 2014 vide Circular No. 07/2014. The ld. ACIT - TDS issued an intimation letter dated 14th October 2017 u/s 200A of the Income Tax Act, 1961 (in short, the Act) imposing a penalty of ₹ 47,000/- u/s 234E of the Act for the alleged delayed in filling of TDS return. Being aggrieved, the assessee filed an appeal before the ld. CIT(A) and the ld. CIT(A) after considering all the reply and precedents passed the impugned order dated 09/05/2019 and his findings read as under: I have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it can be clearly seen from the provisions that though a fee should be charged for default in filling statement as per Section 200 of the Act but the machinery and competence to charge such fee u/s 234E was not conferred until amendment was brought by Finance Act, 2015 in Section 200A of the Act (made effective from 1.6.2015). This clearly means that there was no mechanism of charging of fees prior to 1.06.2015 w.r.t. the period falling before 01.06.2015. Thus, Prior to the amendment in Section 200A of the Act w.e.f. 1.06.2015, the Assessing officer had no authority at all to levy fees pertaining to the period prior to 01.06.2015. This can be clearly understood from the fact that the amendment was made only from Finance Act, 2015. Hence w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rival contentions and purused the material available on record. It is now a settled legal proposition that the amendment to section 200A is prospective in nature and prior to 01.6.2015, the Assessing officer doesn t have power to charge fees under section 234E of the Act. In other words, where the TDS statements have been filed after 01.6.2015 and processing thereof happens and intimation issued thereafter, the Assessing officer is well within his jurisdiction to levy fees under section 234E of the Act. In the present case as well, the filing of TDS statement has happened in year 2017 and thereafter, the same has been processed and intimation issued on 4.12.2017 under section 200A by ACIT-TDS levying late filing fees under section 234E of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00A of the Act. Thus, both the filing of the return of income by the assessee and processing thereof has happened much after 1.6.2015 i.e, the date of assumption of jurisdiction by the AO u/s 200A(1)(C) to levy fees under section 234E of the Act. Even though the quarterly return pertains to quarter ended 31.3.2015, the fact remains that there is a continuing default even after 1.6.2015 and the return was actually filed on 22.07.2015. The said provisions cannot be read to say that where an assessee file his return of income for the period falling after 1.6.2015 and there is a delay on his part to file the return in time, he will suffer the levy of fees, however, an assessee who has delayed the filing of the return of income even pertaining t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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