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TMI Blog2024 (7) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... to the financial years 2012-2013 and 2013-14, we direct the Assessing Officer to delete the late fee charged under section 234E of the Act in the intimation issued under section 200A of the Act for the processing of quarterly TDS return filed by the assessee. Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... may be pleased, to allow amendment, of the Grounds raised herein and adduce additional grounds, at the time of hearing''. 3. Brief facts of the case are that the assessee has filed quarterly TDS return in Form 26Q for assessment years 2013-14 to 2014-15 beyond due date specified under the Act. The intimation under section 200A of the Income Tax Act, 1961 passed by the ACIT, CPC (TDS), Ghaziabad, passed order levying late fee under section 234E of the Act, for belated filing of quarterly TDS returns. The assessee has challenged late fee levied by the ACIT, CPC Ghaziabad before first appellate authority. The ld.CIT(A) has after elaborate discussion of case laws and provisions of the Act held as under: ''6.5 As the constitutional validity of section 234E has been upheld by the High Courts, the late fee was required to be levied & collected w.e.f. 01.7.2012. The procedural/technical mistake, defect or omission in not passing a separate order u/s 234E is cured by protection provided u/s 292B of the Act. In view of decision in case of Dilip Kumar & Company (Supra) the taxing statute has to be interpreted strictly upto the threshold. Astwo reasonable constructions are not possible in i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasons for introduction of Section 200A(1)(c) of the Act are as follows: "Rationalisation of provisions relating to Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) Under Chapter XVII-B of the Act, a person is required to deduct tax on certain specified payment at the specified rate if the payment exceeds the specified threshold. The person deducting tax ('the deductor') is required to file a quarterly Tax Deduction at Source (TDS) statement containing the details of deduction of tax made during the quarter by the prescribed due date. Similarly, under Chapter XVII-BB of the Act, a person is required to collect tax on certain specified receipts at the specified rates. The person collecting tax ('the collector') also is required to file a quarterly Tax Collection at Source (TCS) statement containing the details of collection of tax made during the quarter by the prescribed due date. In order to provide effective deterrence against delay in furnishing of TDS/TCS statement, the Finance Act, 2012 inserted section 234E in the Act to provide for levy of fee for late furnishing of TDS/TCS statement. The levy of fee under section 234E of the Act has proved to be an effe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egard to the assessment years 2012- 13, 2013- 14, 2014-15 and the applicability of Section 200A(1)(c) of the Act for relevant assessment years. There is no dispute on the aspect that the TDS statement was filed under Section 200A of the Act and the respondent had also issued the intimation under Section 200A of the Act, which means the respondents have processed the returns under Section 200A of the Act. When the respondent had started to process the returns of the petitioner under Section 200A of the Act, obviously they have to follow the requirements under Section 200A of the Act. Section 200A(1)(c) of the Act was introduced with effect from 01.06.2015. A reading of the objects and reasons of the same makes it clear that since no mechanism was available, Section 200A(1)(c) of the Act was introduced for imposing late fee for the delay in filing statement of TDS. Therefore, from the introduction of the said Sub-Section it is clear that prior to the same, though Section 234E of the Act was introduced with effect from 01.07.2012, the Authorities were not empowered to impose the late fee while processing the statement of TDS under Section 200A of the Act 15. The learned counsel for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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