DIRECTOR OF PHYSICAL PLANT O.U.A.T,BHUBANESWAR vs. ACIT(CPC-TDS), GHAZIABAD

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ITA 5/CTK/2020Status: DisposedITAT Cuttack14 October 2020AY 2010-116 pages
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What did the Tribunal hold?

The Tribunal held that the levy of late filing fee under Section 234E was not permissible prior to the amendment of Section 200A of the Act. The issue of interest under Sections 201(1A) and 220(2) was remitted to the CIT(A) for a reasoned order, with a direction to rectify a specific calculation error.

What were the facts?

The assessee, a Government of Odisha organization, filed TDS statements belatedly for several quarters and assessment years. This led to the levy of interest for late payment under Section 201(1A) and 220(2) of the Income Tax Act, and late filing fees under Section 234E for specific quarters.

What were the issues?

Whether the levy of late filing fee under Section 234E was valid prior to the amendment of Section 200A, and whether the interest charged under Sections 201(1A) and 220(2) was correctly calculated and justified.

Which sections of the Income-tax Act were involved?

Section 201(1A),Section 220(2),Section 234E,Section 200A

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Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK

Before: SHRI C.M. GARG, JM & SHRI L.P. SAHU, AM

Hearing: 14/10/2020Pronounced: 16/10/2020

O R D E R Per Bench: The assessee has filed these seven appeals against the order of CIT(A)-1, Bhubaneswar, dated 22.10.2019 & 16.10.2019 for the A.Ys. 2010-2011, 2011-2012, 2012-2013, 2013-2014, 2014-2015 & 2017- 2018, respectively 2. None appeared on behalf of the assessee even the case was called for second round of hearing. Applications dated 14.10.2020 have been filed by the ld.AR of the assessee for adjournment, however, looking to the facts and circumstances of the case, we rejected the adjournment applications and proceeded to dispose off all the appeals of the assessee after considering the submissions of ld.DR and the material evidence available on record.

3.

The sole issue involved in all the appeals is with regard to confirming the interest u/s.201(1A) of the Act along with interest charged u/s.220(2) of the Act by the CIT(A) and also levy of late filing fee u/s.234E of the Act in the appeals for A.Y. 2014-2015 for Quarters 2nd & 3rd. The details of fee levied in all the appeals are as under :- .Y. Qtr Interest Late filing Interest Total fee Demand levied fee levied levied levied confirmed u/s.201(1A) u/s.234E u/s.220(2) by the of the Act of the Act of the Act CIT(A) 05/CTK/20 2010-11 4 12,888/- - 4,608/- 17,500/- 1,34,541/- 06/CTK/20 2011-12 4 1,19,071/- - 15,470/- 1,34,541/- 1,34,541/- 07/CTK/20 2012-13 4 14,527/- - 3,190/- 17,720/- 17,720/- 08/CTK/20 2013-14 4 7,311/- - 3,334/- 10,650/- 10,650/- 09/CTK/20 2014-15 2 - 12,800/- 5,984/- 18,780/- 18,780/- 10/CTK/20 2014-15 3 - 17,200/- 8,084/- 25,284/- 25,284/- 11/CTK/20 2017-18 4 2,799/- - - 2,800/- 2,800/-

4.

Since the issue in all the appeals, is identical, except different in figure, therefore, all the appeals are heard analogously and disposed off by this consolidated order. For the sake of convenience, we shall take into consideration the facts and grounds mentioned in for the assessment year 2011-2012 for deciding all the appeals and the outcome of the same shall be applied mutatis mutandis to the other appeals also.

1.

Odisha Organisation and remitted TDS amount for the respective quarters in the respective assessment years under consideration belatedly, on the basis of which the ACIT (TDS-CPC), Ghaziabad issued an intimation u/s.154 of the Act levying interest on late payment u/s.201(1) and 220(2) of the Act. Further, the ACIT(TDS-CPC) has also levied late fee u/s.234E of the Act for Quarter-2nd & 3rd (AY: 2014- 2015). Aggrieved thereby, the assessee preferred appeal before the CIT(A) and the CIT(A) upheld the action of ACIT(TDS-CPC) and dismissed the appeals of the assessee.

6.

None appeared on behalf of the assessee.

7.

On the other hand, ld.DR relied on the orders of authorities below.

8.

After hearing the submissions of ld. DR and perusing the entire material available on record and orders of authorities below, we find that the assessee is a Government of Odisha Organisation and due to delay in remittance of the TDS amount for the above quarters in the respective assessment years under consideration, the ACIT(TDS-CPC), Ghaziabad has levied late filing fee u/s.201(1A)/220(2) of the Act in the all appeals under consideration and the AO also levied late filing fee u/s.234E of the Act for the A.Y.2014-2015(Quarter-2nd &3rd), to which the CIT(A) in appeal has upheld the action of ACIT(TDS-CPC).

Act for the A.Y.2014-2015(Quarter-2nd &3rd), we are of the opinion that this issue is covered by the decision of coordinate bench of the Tribunal in the case of D.D.Motors Vs. DCIT(CPC-TDS) [2019] 111 taxmann.com 493 (Delhi-Trib) and the decision in the case of Govt. High School, Unit- 6 Vs. ACIT(CPC-TDS), in order dated 25.02.2020, wherein it is held that prior to amendment of section 200A of the Act with effect from 1-6-2015, levy of late fee under section 234E for default in furnishing TDS statement could not be effected in course of intimation while processing TDS statement under section 200A of the Act. Therefore, the fee levied u/s.234E of the Act while processing the statement of tax deducted at source was beyond the scope provided under Section 200A of the Act. Accordingly, we respectfully follow the above decisions of the Tribunal and set aside the orders of lower authorities in this regard and delete the levy of late filing fee u/s.234E of the Act for the A.Y.2014-2015(Quarter-2nd &3rd).

10.

With regard to interest charged u/s.201(1A) & 220(2) of the Act, on perusal of the order of CIT(A), we find that the assessee has explained for late filing of TDS, however, there is no deliberation on the submissions made by the assessee in this regard by the CIT(A) and the CIT(A) has only endorsed to the action taken by the ACIT(TDS-CPC).

Looking to the facts of the case, we remit the issue involved in all the speaking order after verification of the TDS payments as submitted by the assessee before him. The assessee is directed to appear before the CIT(A) along with the documents regarding payments made to the contractor with complete details i.e. amount of payment, date of payment, date of TDS deduction and date of TDS deposit along with copy of challan. The CIT(A) is also directed to consider the documents filed by the assessee and decide the issue as per law. Needless to say, the assessee shall be given reasonable opportunity of hearing and the assessee is also directed to cooperate with the CIT(A) for early disposal of the case. Further, on perusal of the order of the CIT(A) for A.Y.2010- 2011 and the intimation u/s.154 of the Act, it is found that the CIT(A) has wrongly sustained Rs.1,34,541/- instead of Rs.17,500/-. As per the demand raised by the ACIT(TDS-CPC), Ghaziabad vide intimation u/s.154 of the Act, the interest on late payment u/s.201(1A) and interest charged u/s.220(2) of the Act is Rs.17,500/-. Therefore, the CIT(A) is directed to modify his order dated 22.10.2019 passed in I.T.Appeal No.0237/2018-19 for assessment year 2010-2011 accordingly. And, after rectification, the CIT(A) is directed to pass order in the terms of our above observations made for all the assessment years under consideration. We order accordingly.

08/CTK/2020 & are allowed for the statistical purposes and appeals of the assessee in ITA Nos.09&10/CTK/2020 are partly allowed for statistical purposes.

Order pronounced in the open court on 16/10/ 2020. Sd/- Sd/- (C.M.GARG) (L.P.SAHU) न्याययक सदस्य / JUDICIAL MEMBER ऱेखा सदस्य / ACCOUNTANT MEMBER कटक Cuttack; ददनाांक Dated 16/10/2020 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रयिलऱपप अग्रेपिि/Copy of the Order forwarded to : अऩीलाथी / The Appellant- 1. Director of Physical Plant, OUAT Siripur, Bhubaneswar District : Khurda प्रत्यथी / The Respondent- 2. ACIT(CPC-TDS), Ghaziabad आयकि आयुक्त(अऩील) / The CIT(A), 3. आयकि आयुक्त / CIT 4. ववभागीय प्रनतननधध, आयकि अऩीलीय अधधकिण, कटक / DR, ITAT, 5. Cuttack गार्ा पाईल / Guard file. 6. सत्यावऩत प्रनत //True Copy// आदेशानुसार/ BY ORDER,

(Senior Private Secretary) आयकर अपीऱीय अधिकरण, कटक/ITAT, Cuttack

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