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Income Tax Appellate Tribunal, “PATNA BENCH, PATNA
Before: Shri Rajesh Kumar & Shri Sonjoy Sarma
सुनवाई क� तार�ख/Date of Hearing : 19/01/2023 घोषणा क� तार�ख/Date of Pronouncement : 31/01/2023 आदेश / ORDER Per Bench: The present bunch of appeals have been preferred by the Assessee- Bank against the orders of the National Faceless Appeal Centre [hereinafter referred as the ‘CIT(A)’] dated 25.05.2022 whereby the Ld. CIT(A) has dismissed the appeals of the assessee against the respective orders of TDS CPS Centre ( central processing Centre) passed u/s 154 of the Act of various dates. The Assessee-appellant through these appeals has agitated the levy of late filing fees u/s 234E of the Income Tax Act (hereinafter referred to as ‘the Act’)along with interest thereupon levied u/s 220(2) of the Act. For the purpose of narration of facts, assessee’s appeal is taken as the lead case. .-348 to 370, 375 to 399, 400 to 424, 425 to 450, 451 to 468, 483 to 484, 498 to 528/Pat/2022
The brief facts of the case are that the assessee/appellant is a branch of Dakshin Bihar Gramin Bank, a Regional Rural Bank (RRB). The assessee deducted tax at source (TDS) in respect of certain payments. As per the provisions of section 200(3) of the Act read with Rule 31A of the Income Tax Rules 1952, a deductor must file quarterly returns/ statements of the Tax deducted at source (TDS). The assessee filed returns of the TDS belatedly. The Income Tax Authorities processed the return for the relevant quarter u/s 200A of the Act. Since, there was delay in filing the TDS statements, the demand for fees for late filing of TDS statements as prescribed u/s 234E of the Act was raised by the concerned Income Tax Authorities under an intimation issued u/s 200A of the Act. The period of TDS statement/TDS return pertained to the period prior to 01.06.2015 upon which the late fees u/s 234E was levied.
Earlier, there was no provision u/s 200A of the Act for levying/demanding of fees u/s 234E of the Act while processing TDS return u/s 200A of the Act. It was only on 01.06.2015 that the statute was amended and clause (c) was inserted to section 200A, whereby, it was provided that while processing TDS return u/s 200A of the Act, fees, if any, shall be computed in accordance with the provisions of section 234E of the Act.
The ld. counsel, in this respect, has relied upon the decision of the Hon’ble Karnataka High Court in the case of “Fatehraj Singhvi vs. Union of India” 73 Taxmann.com 252 order dated 26.08.2016, wherein, the Hon’ble High Court has held that the amendment in section 200A by way ITA Nos.-348 to 370, 375 to 399, 400 to 424, 425 to 450, 451 to 468, 483 to 484, 498 to 528/Pat/2022 of insertion of clause (c) is prospective only with effect from 01.06.2015 and that the demand of fees u/s 234E of the Act prior to 01.06.2015 cannot be made since there was no enabling provision of section 200A of the Act for raising a demand in respect of levy of fees u/s 234E of the Act. The Hon’ble Karnataka High Court in this respect observed that when the statute confers no express power u/s 200A before 01.06.2015 on the authority either to compute any fees u/s 234E or to raise demand in this respect while processing return u/s 200A, the demand for the period prior to 01.06.2015, raised in an intimation u/s 200A, could not be sustained. The ld. counsel, in this respect, has also placed reliance on the decision of the Kerala High Court in the case “M/s Sarala Memorial Hospital vs. Union OF India” in WP(C) No.37775 of 2018 decided on 18.12.2018 and further upon the various decisions of the co-ordinate Benches of the Tribunal, following the aforesaid decisions of the hon’ble Karnataka High Court and hon’ble Kerala High Court.
On the other hand, the ld. DR has strongly relied upon the decision of the Hon’ble Gujarat High Court in the case of “Rajesh Kourani vs. Union OF India” reported in [2017 83 taxmann.com 137(Gujarat)], wherein, the Hon’ble High Court has held that section 200A is a machinery provision providing mechanism for processing a statement of deduction of tax at source and for making adjustments which are merely arithmetical or prima facie in nature and does not create any charge in any manner. Section 234E is a charging provision creating a charge for levying fee for certain defaults in filing statements and that fee ITA Nos.-348 to 370, 375 to 399, 400 to 424, 425 to 450, 451 to 468, 483 to 484, 498 to 528/Pat/2022 prescribed u/s 234E could be levied even without a regulatory provision being found in section 200A for computation of fee.
We have heard the rival submissions and perused the material available on record. We note that in all there were 476 appeals filed by the assesse before the tribunal having similar issue. Out of the said appeals 326 appeals have been heard by the different combinations. The hearing of batch of appeals comprising 176 appeals were concluded on 19th January, 2023 while the bunch of appeals comprising 150 appeals were heard on 17.01.2023. In both the bunch of appeals the orders of the coordinate benches were pronounced. The batch of 176 appeals in & others dated 25.01.2023 was pronounced on 19.01.2023 and order in batch of appeals having 150 appeals in ITA Nos. 191/Pat/2022 & others was pronounced on 30.01.2023. We note that the co-ordinate benches have passed the orders deciding these bunches of appeals against the assessee. For the sake of convenience and ready reference, we reproduce hereunder, the operative part of the decision in ITA Nos. 34/Pat/2022 & others: “6. We have heard the rival contentions and gone through the record. Without going into the merits of the controversy, it is noticed that the appellant- assessee, in these appeals, has not challenged the original orders passed u/s 200A of the Act, which in the lead case (ITA No. 34/Pat/2022) is dated 17.04.2015. Admittedly, the original orders/intimations passed u/s 200A of the Act relating to all the appeals pertained to the year 2015, some are of the date prior to 01.06.2015 and some are even of after 01.06.2015. The assessee has not filed any appeal against the said original orders/intimations passed u/s 200A of the Act. The assessee in the year 2021 filed correction TDS statement/request to get the details of the exact amount due including the up-to-date due interest on the late filing fees as levied vide original order of 2015. In response to the said request of the ITA Nos.-348 to 370, 375 to 399, 400 to 424, 425 to 450, 451 to 468, 483 to 484, 498 to 528/Pat/2022 assessee, the Central Processing Centre issued impugned order u/s 154 of the Act showing the exact amount due towards assessee as directed vide original order/intimation passed u/s 200A dated 17.04.2015. It is pertinent to mention here that neither the assessee has ever challenged the demand raised u/s 234E of the Act vide order/intimation dated 17.04.2015 by way of filing any appeal against the said order before any appellate authority nor the assessee filed any rectification application u/s 154 of the Act within the limitation period of four years as prescribed under the Income Tax Act for rectification of mistake in the TDS processing statement/order dated 17.04.2015 passed by the Assessing Officer u/s 200A of the Act. It is only in the year2021, that the assessee only resorted to file the correction statement to know the exact amount due against it along with interest thereupon. Neither the said correction statement could be said to be any application moved u/s 154 of the Act nor the same was within the limitation period of four years, nor any grievance was raised by the assessee in the said correction request in respect of the validity of levy of late filing fee u/s 234E along with interest u/s 220 of the Act. Merely because, the Assessing Officer while accepting the request of the assessee in giving details of the up-to-date due late filing fee along with interest, that, in any way, cannot be said to be the rectification or amendment of the original order of 2015, nor any prejudiced can be said to have been caused to the assessee. Merely, giving the statement of the exact amount due to the assessee, that too, at the request of the assessee, is just the calculation provided by the Assessing Officer and the assessee, in this respect, can agitate only if the assessee is aggrieved by the aforesaid calculation given by the Assessing Officer. The assessee in the process of requesting and taking calculation of interest due cannot be said to have acquired any cause of action or right to challenge the original order dated 27.04.2015 passed u/s 200A of the Act. The assessee has not pointed out as to what mistake has occurred in the order passed u/s 154 of the Act as compared to the original order dated 27.04.2015 passed u/s 200A of the Act. In fact, no mistake apparent on record, has been alleged in the said order by the assessee itself in its correction statement/request.
7. The ld. counsel for the assessee, though, has relied upon certain decisions of the Coordinate Benches of the Tribunal to contend that an appeal, against order passed u/s 154 of the Act, can be filed within the limitation period as due from the date of order passed u/s 154 of the Act. There is no dispute relating to the aforesaid proposition. If the assessee is aggrieved by an order passed u/s 154 of the Act he will be entitled to file appeal against the said order. However, the assessee must bring out from the record as to what ITA Nos.-348 to 370, 375 to 399, 400 to 424, 425 to 450, 451 to 468, 483 to 484, 498 to 528/Pat/2022 prejudice has been caused to the assessee in the order passed u/s 154 of the Act when compared with the original order which has been amended or rectified. Neither any rectification has been done by the Assessing Officer to the original order nor any cause of action has accrued to the assessee by getting up-to-date calculation of the demand. In view of this, there is no merit in the appeal of the assessee. At this stage the Ld. Counsel for the assessee submits that the original intimation/order passed u/s 200A was not served/available to the assessee and that the assessee wants to assail the original orders of 2015 and that for the said purpose, the delay caused in filing the said appeals may be condoned. We are not convinced with the above submission of the Ld. Counsel. The assessee will have to explain the cause of delay in the application/hearing in respect of the appeals, if any, the assessee is contemplating to file. However, it is directed that the time consumed by the assessee in prosecuting the present litigation i.e. from the date of impugned order dated 18.03.2021 till the receipt of this order will not be counted for the purpose counting the limitation period, if the assessee chooses to file the appeal against the original order dated 11.01.2014. Rest of the delay period, the assessee will have to explain as per law. Similar directions will apply to all the captioned appeals. Since, all the facts and circumstances involved in all the appeals are identical; hence, we do not find any merit in these appeals of the assessee. The same are accordingly hereby dismissed subject to our observations made above.
We also note that the coordinate bench while deciding the second batch of 150 appeal in & others have followed the decision of the coordinate bench in 34/Pat/2022 & others dated 25.01.2023. We have also perused the facts of the present appeals which were heard by us and observe from the facts before us that in the present bunch of appeals also, the facts and issues involved are quite similar and no distinguishing feature is there. Accordingly , following the said decisions of the co-ordinate benches in ITA Nos. 34/Pat/2022 & others dated 25.01.2023 and ITA Nos. 191/Pat/2022 & others dated 30.01.2023, we do not find any ITA Nos.-348 to 370, 375 to 399, 400 to 424, 425 to 450, 451 to 468, 483 to 484, 498 to 528/Pat/2022 merits in the impugned appeals. Consequently all the appeals of the assessee are dismissed.
In the result, all the appeals of the assessee stand dismissed.
Kolkata, the 31st January, 2023.