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TMI Blog2024 (2) TMI 578X X X X Extracts X X X X X X X X Extracts X X X X ..... after depositing all the tax without any delay. Accordingly, the demand on account of 234E is cancelled.In any case, the levy of fee u/s 200A in accordance with the provision of section 234E has come into the statute w.e.f. 1.6.2015. Since the challan and statement has been filed much prior to this date, therefore, no such tax can be levied u/s 200A. Interest u/s 220(2) cannot be levied when fee u/s 234E itself is not leviable. Charging of interest u/s 201(IA), the same cannot be charged as admittedly no order u/s 201(1) has been passed holding the assessee to be assessee in default and, therefore, such an interest is also deleted. We have examined the issue and the provision of Section 201, Section 200(3) and Section 234E. Since, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een raised in the letter / purported order and therefore it is not appealable order falling under section 246 of the IT Act , whereas, specific demand with regards to levy of fees was raised and as such, the said order was an appealable order and the matter should have been decided on merits by learned CIT(A). 3. The issue of levy of charge u/s 234E of the Income Tax Act, 1961 stands decided by the order of the Co-ordinate Bench of ITAT in ITA No. 2649/Del/2018, order dated. The facts are similar to the facts of the instant case. The relevant part of the said order is as under: 3. Before the Ld. CIT (A), the assessee s contention has been that, firstly, each of the sellers were paid less than amount of Rs. 50 lacs in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the tax deposited. He submitted that, from the plain reading of section 234E, section 200(3) r.w. Rule-31A (4A), fee u/s 234E is leviable only when the statement is not filed as prescribed u/s 200(3), which in turn provides the statement is to be filed after payment of tax to the prescribed authority as per prescribed Rule- 31A(4A). The said Rule provides for filing of 'challan cum statement' within seven days from the date of deduction. Since, challan cum statement has been filed by the assessee on 05.04.2014 after paying the tax as required u/s 200(3), therefore, there was no default so as to warrant levy fee u/s 234E. In other words Rule31A(4A) merely refers to challan cum statement that means that filing of the statement after t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the time of purchase, then there was a clear cut default and assessee was also liable for levy of fee u/s 234E read with section 200A. He thus strongly relied upon the order of the Ld. CIT (A). 6. We have heard the rival submissions and also perused the relevant finding given in the impugned orders as well as material referred to before us. At the outset, from the perusal of the rectification order u/s 200A generated by TDS (CPC), it is noticed that the TDS in 26QB mentions date of filing of challan cum statement as 5.4.2014, wherein late filing of challan cum statement u/s 234E has been levied. The assessee had purchased the property on 6.12.2013 i.e., relevant to the assessment year 2014-15. Since assessee had purchased the prop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d therein. Thus, fee u/s 234E is leviable if the statement is not filed as prescribed u/s 200(3) which in turn provides that the statement to be filed after the payment of tax to the prescribed authority. The relevant rule 31A(4A) provides that for filing of the challan cum statement within seven days from the date of deduction. Now here in this case the demand has been raised purely on the ground that statement has not been furnished for the tax deduction at source. As stated above, the assessee has duly deposited the tax not at the time of purchase albeit on 5.4.2014 and on the same date, statement has also been filed. The relevant provision of section 200(3) read with rule 31A (4A) only refers to filing of challan cum statement after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 234E nor the determination thereof, the demand or the intimation for the previous period or previous year prior to 1.6.2015 could not have been made. 7. Thus, we hold that no fee was leviable to the assessee u/s 234E in violation of section 200(3), because assessee had furnished the statement immediately after depositing all the tax without any delay. Accordingly, the demand on account of 234E is cancelled. 8. Similarly interest u/s 220(2) cannot be levied when fee u/s 234E itself is not leviable. In so far as charging of interest u/s 201(IA), the same cannot be charged as admittedly no order u/s 201(1) has been passed holding the assessee to be assessee in default and, therefore, such an interest is also deleted. 4. We ..... X X X X Extracts X X X X X X X X Extracts X X X X
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