DEBASHIS MITRA,G B NAGAR vs. DCIT,TDS, GHAZIABAD

PER PRADIP KUMAR KEDIA, A.M.:

The captioned appeals have been filed at the instance of the Assessee against the orders of the Commissioner of Income Tax (Appeals)-I, Noida [‘CIT(A)’ in short] both dated 28.02.2018 concerning levy of late fee of different amount under Section 234E of the Act vide intimations both dated 02.02.2016 under Section 200A(1) of the Act for the Financial Year 2014-15 relevant Assessment Year 2015-16. ITA No.2962/Del/2018 (Assessment Year 2015-16) 2. As per the grounds of appeal, the assessee being buyer of a property was liabl e to deduct TDS under Section 194A of the Act. As contended, there was no delay in depositing the tax but tax was

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wrongly deposited by putting name of buyer in place of seller and name of seller in place of buyer. Thus, the default committed is only technical and without any loss to the Revenue. As further noticed from the statement of facts, the assessee tried to seek rectification of form 26QB specified for payment from Assessing Officer-TDS vide application dated 15.09.2014 but however no rectification was carried out. The TDS was yet again deposited by the assessee on 14.05.2015 with correct information. Despite this, late filing fee under Section 234E @ Rs.200 per day aggregating to Rs.62,200/- was levied on the assessee. 3. We have perused the first appellate order as well as the order passed under Section 234E of the Act. The Revenue has imposed late filing fee under Section 234E of the Act for default in furnishing TDS return within time stipulated in law. 4. The machinery provision of Section 200A of the Act provides for processing of statement of tax deducted at source which has been amended by the Finance Act, 2015 w.e.f. 01.06.2015 and new clauses (c) and (d) has been inserted in Section 200A of the Act. By virtue of such amendment, while processing of TDS statement, the late fee if any, shall be computed in accordance with provisions of Section 234E of the Act. As a corollary, prior to amendment under Section 200A of the Act, levy of fee under Section 234E during processing of TDS statement is not tenable. 5. Since the amendment has been inserted under Section 200A of the Act w.e.f. 01.06.2015, the default committed by the assessee, if any, prior to the amendment will not attract fee under Section 234E of the Act. 6. The captioned appeal involving levy of late filing fee under Section 234E are in relation to period prior to 01.06.2015. Thus, late

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filing fee under Section 234E is contrary to the legislative mandate. The Co-ordinate Bench of Delhi ITAT in the case of Raj Veer Singh vs. ACIT-CPC-TDS ITA No.3681/Del/2017 order dated 09.07.2021 and many others have decided the issue in favour of the assessee in similar circumstances. 7. Since the demand under charging Section 234E for late filing of TDS return arising from belated TDS statements filed prior to 01.06.2015, the impugned late fee imposed requires to be deleted. 8. This being so, we do not consider it necessary to go to other aspects of the case such as double payment made by the assessee. 9. In the result, the appeal of the assessee is allowed. ITA No.2963/Del/2018 (Assessment Year 2015-16) 10. The facts are identical to ITA No.2962/Del/2018 for levy of fee of Rs.21,602/- under challenge. The observations made in ITA No.2962/Del/2018 shall apply mutatis mutandis and therefore, the late filing fee under Section 234E shall not apply in the present appeal too. The late filing fee under Section 234E is thus cancelled ex-parte. 11. In the result, both the captioned appeals of the assessee are allowed. Order pronounced in the open Court on 07/03/2023.

Sd/- Sd/- [CHANDRA MOHAN GARG] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /03/2023 Prabhat