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TMI Blog2023 (6) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in favour of assessee. - I.T.A. No.74 TO 89/Viz/2023 - - - Dated:- 3-4-2023 - SHRI DUVVURU RL REDDY, HON BLE JUDICIAL MEMBER For the Appellant : Sri GVN Hari, Advocate For the Respondent : Sri ON Hari Prasada Rao, Sr. AR ORDER PER DUVVURU RL REDDY, Judicial Member : All the captioned appeals are filed by the assessee against the orders of the Ld. Commissioner of Income Tax (Appeals) [Ld. CIT(A)], National Faceless Appeal Centre (NFAC), Delhi in various orders dated 03/01/2023 for the AYs 2014-15 to 2017-18. Since the issues involved in all the appeals are identical, for the sake of convenience, these appeals are clubbed, heard together and disposed off in this consolidated order. I.T.A. No.74 TO 81/Viz/2023 (AY: 2014-15 2015-16) 2. The assessee has raised four identical grounds in all the appeals pertaining to AY 2014-15 and 2015-16. Therefore, for the sake of reference the grounds of appeal raised in ITA No.74/Viz/2023 are extracted herein below: 1. The CPC-TDS is not correct in levying the late filing fee U/s. 234E of the Income Tax Act, 1961. 2. The CPC-TDS erred in law to charge the fees U/s. 234E of the Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in levying and confirming the levy of late fee U/s. 234E of the Act while processing the TDS return U/s. 200A of the Act for the relevant period under consideration. In support of his view the Ld. AR relied on the judgment of the Hon ble Karnataka High Court in the case of Fatheraj Singhvi vs. Union of India [2016] 73 taxmann.com 252 (Karnataka); judgment of the Hon ble Kerala High Court in the case of United Metals vs. ITO (TDS) reported in [2022] 137 taxmann.com 115 (Kerala); decision of the Pune Bench of the Tribunal in the case of Medical Superintendent Rural Hospital, Nashik vs. DCIT, CPC (TDS), Ghaziabad in ITA Nos. 651 to 661/Pun/2018, dated 25/10/2018. The Ld. AR further submitted that since the Ld.CIT(A) relied only the judgments of the Hon ble Bombay High Court in the case of Rashmikat Kundalia (supra) as well as the judgment of the Hon ble Gujarat High Court in the case of Rajesh Kourani vs. Union of India (supra) and ignored the ratio laid down by the Hon ble Karnataka High Court in the case of Fatheraj Singhvi (supra); judgment of the Kerala High Court in the case of United Metals (supra) and decisions of various Benches of the Tribunal which is against the spirit an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Ld. Revenue Authorities. The main question that arises in this appeal is whether TDS returns pertaining to the period prior to 01/06/2015, if filed after 01/06/2015 and processed after 01/06/2015 whether they attract the amended provisions of Finance Act, 2012 and the specific provision for levy of fee under section 234E of the Act which was inserted w.e.f 1/6/2015. In the present case the assessee filed its TDS statement for the 1st Quarter of FY 2013-14 on 09/12/2015 whereas the due date for filing the TDS returns is 15/07/2013. The Ld. AO treating this filing / furnishing of TDS statement as a default since it is not filed within the stipulated time as per the TDS provisions and imposed late fees u/s. 234E of the Act. On appeal, the Ld. CIT(A) confirmed the action of the Ld. AO and dismissed the assessee s appeal. 7. Considering the facts of the present case, I am of the considered view since the enabling provision for computation of fee while processing the statements was inserted in section 200A only w.e.f 1/6/2015 and therefore, the charging section i.e., section 234E cannot be enforced to the cases prior to 1/6/2015. Further, I am of the view that the amended provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Parliament also provided for its utility for giving privilege under Section 271H(3) that too by expressly put bar for penalty under Section 272A by insertion of proviso to Section 272A(2), it can be said that a particular set up for imposition and the payment of fee under Section 234E was provided but, it did not provide for making of demand of such fee under Section 200A payable under Section 234E. Hence, considering the aforesaid peculiar facts and circumstances, we are unable to accept the contention of the learned counsel for respondent-Revenue that insertion of clause (c) to (f) under Section 200A(1) should be treated as retroactive in character and not prospective. 22. It is hardly required to be stated that, as per the well established principles of interpretation of statute, unless it is expressly provided or impliedly demonstrated, any provision of statute is to be read as having prospective effect and not retrospective effect. Under the circumstances, we find that substitution made by clause (c) to (f) of sub-section (1) of Section 200A can be read as having prospective effect and not having retroactive character or effect. Resultantly, the demand under Section 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mutandis applies to the present appeals (ITA Nos. 75 to81/Viz/2023) also. Accordingly, the appeals filed by the assessee are allowed. 13. In the result, all the eight appeals filed by the assessee are allowed. ITA Nos. 82 to 89/Viz/2023 (AYs: 2016-17 2017-18) 14. These appeals are filed by the assessee against the orders of the Ld. CIT(A)-NFAC, Delhi dated 03/01/2023 arising out of the orders passed u/s. 200A of the Act for the AYs 2016-17 2017-18. 15. The assessee has raised the following identical grounds of appeal in its appeals: 1. The CPC-TDS is not correct in levying the late filing fee U/s. 234E of the Income Tax Act, 1961. 2. The Commissioner of Income Tax (appeals) should have seen that there is a reasonable and genuine reason for delay in filing of Quarterly statements. 3. Any other ground that may be urged at the time of hearing of the appeals. 16. The crux of the issue involved in these appeal is whether the return pertaining to the period prior to 01/06/2015 but filed after 01/06/2015 and processed after 01/06/2015 attract the amended provisions of section 200A read with section 234E inserted w.e.f 01/06/2015 which is a s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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