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Income Tax Appellate Tribunal, HYDERABAD BENCHES “A”: HYDERABAD
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “A”: HYDERABAD (THROUGH VIRTUAL CONFERENCE) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER
ITA No. 430/H/2021 A.Y.: 2013-14 Sambasiva Rao Jarugula, Vs. Income-tax Officer Hyderabad. (TDS), Ward – 2(3), Hyderabad. PAN – ADRPJ 9806D (Appellants) (Respondent) Assessee by: Shri P.R. Bharath Kumar & Shri Kiran Kash Revenue by: Shri Rohit Mujumdar, CIT-DR Date of hearing: 24/11/2021 Date of pronouncement: 26/11/2021
O R D E R PER L.P. SAHU, A.M.: This appeal filed by the assessee is directed against CIT(A), National Faceless Appeal Centre’s order dated 01/09/2021 for AY 2013-14 involving proceedings u/s 200A(1) of the Income Tax Act, 1961 ; in short “the Act.
It emerges, at the outset, with the able assistance of both the learned representatives that the assessee’s sole
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substantive grievance canvassed herein seeks to reverse both the lower authorities’ action levying fees u/s 234E of the Act. We find that the instant issue before us is no more res-integra in the light of this Tribunal’s recent coordinate bench decision in the case of M/s Terra Infra Development Ltd., Hyderabad in ITA Nos. 1876 & 1875/Hyd/2017 for AYs 2013-14 and 2014-15, order dated 03/10/2018, holding as under:
“4. We find that though the provisions for levy of fee in certain cases has been brought into the Statute book w.e.f. 1.7.2012, it has been brought under the purview of section 200A only w.e.f. 1.6.2015. Therefore, as rightly held by the Coordinate Bench in the case of M/s. Sonalac Paintings & Coatings Ltd (cited Supra) we hold that the interest u/s 234E cannot be levied in respect of TDS returns filed prior to 1.6.2015. For the sake of ready reference, the relevant para is reproduced hereunder:
"10. Now coming to the merits of the case, we find force in the argument of the learned Counsel for the assessee that prior to 01.06.2015, there was no mandate, as per the Statute, to make any adjustment on account of levy of fees u/s 234E while processing TDS returns u/s 200A. We have taken note of the order of the Hon'ble Gujarat High Court holding the amendment made to section 200A w.e.f. 01.06.2015, giving power to make adjustment on account of fees u/s 234E while processing returns u/s 200A to be retrospective in nature, stating that this power given to the AO is a machinery provision while the substantive provision of the power to levy fees u/s 234E was always there on the Statute from
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01.06.2012. But at the same time, we note that the Hon'ble Karnataka High Court held that levy of fees u/s 234E while processing returns, TDS u/s 200A prior to 01.06.2015 was without any authority of law. With two divergent view of the Hon'ble High Courts on the issue and in the absence of any decision by the jurisdictional High Court, we concur with the learned Counsel for the assessee that as per the well accepted rule of construction, if two reasonable constructions of a statute are possible the construction which favours the assessee must be adopted. In view of the same, respectfully following the decision of the Karnataka High Court in the case of Fatheraj Singhvi (Supra), we hold that the fees levied in all the present cases u/s 234E prior to 01.06.2015 in the intimations made u/s 200A was without authority of law and the same is therefore, directed to be deleted. In view of the above, all the appeals of the assessee stand allowed".
Respectfully following the same, assessee's appeals for both the AYs are allowed.”
We adopt the above detailed discussion mutatis- mutandis to direct the Assessing Officer to delete the impugned levy(ies) involving TDS returns filed/to be filed prior to 01/06/2015. Necessary computation shall follow as per law.
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In the result, appeal of the assessee is allowed in above terms.
Pronounced in the open court on 26th November, 2021.
Sd/- Sd/- (S.S. GODARA) (L.P. SAHU ) JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad, Dated: 26th November, 2021. kv Copy to : 1 Sambasiva Rao Jarugula, Plot No. G28, 29 & 30, Flat No. 301, County Castle, Road No. 15, Panchavati Colony, Manikonda, Hyderabad – 500 089 2 ITO (TDS), Ward – 2(3), Hyderabad 3 CIT(A), Govt. of Finance Ministry of Finance, Income Tax Department, NFAC, Delhi - 110001 ITAT, DR, Hyderabad. 4 5 Guard File.