NAND KISHORE SHARMA,KOTA vs. INCOME TAX OFFICER (TDS), KOTA

IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, “SMC” BENCH, JAIPUR BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER & SHRI T. R. SENTHIL KUMAR, JUDICIAL MEMBER ITA No.584/JPR/2025 (Assessment Year:2013-14)

Nand Kishore Sharma Vs. ITO G-91 Kuber Ind. Area TDS Ranpur Kota Kota �थायीलेखासं./जीआइआरसं./PAN/GIR No:ACZPS 5543D Appellant .. Respondent Assessee by : None Departmentby : Mrs. Arti Rawat, JCIT Date of Hearing 30.07.2026 Date of Pronouncement 29.10.2026 O R D E R Per Annapurna Gupta, AM:- The present appeal has been filed by the assessee against the order passed by the National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as “Ld. CIT(A)”), dated 17.03.2025 under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”). 2. The grounds raised by the assessee read as under:-

P a g e | 2 ITA No.584/JPR/2025 Nand Kishore Sharma 1. Ground, The Ld. AO has erred in the facts and law of the case in applying the harshest provisions of section 234E against the assessee, without any conclusive evidence with him, making the additions of penalty and interest is not tenable in being based on conjectures and surmises and hypothetical basis is biased, pro-revenue and is a result of mere conjectures and surmises which is not tenable in law. 2. Ground The appellant craves leave to add to or amend or vary the aforesaid grounds before disposal of the appeal. 3. The solitary issue in the present appeal relates to levy of fees for late filing of TDS return in terms of the provisions of Section 234E of the Act amounting to Rs.25,000/- and the levy of interest thereon for the delay in the payment of the said fees in terms of the provision of Section 220(2) of the Act amounting to Rs.23,368/- and Rs.460/- for interest on late fee, resulting in a total demand of Rs.48,830/- being held to be payable by the assessee on account of late deposit of TDS return. The TDS return noted to be deposited late isthe Quarter 4 TDS return in 26Q of FY. 2012-13 (AY 2013-14). This feeswas raised on the assessee vide the intimation order u/s 154 r.w.s. 200A/206CB of the Act passed on 04.06.2024. Copy of the said order was placed before us and the perusal of the same reveals that the fee was levied while processing the quarter Q4 TDS return filed in the form 26Q for FY 2012-13. 4. The fact on record thereforeis that since the assessee delayed filing Q4 TDS return in Form 26Q for FY 2012-13 fees u/s 234E of the Act and interest thereon was levied on the assessee amounting in all to Rs.48,830/-. 5. None appeared for the assessee. However submissions in writing were filed before us by the Ld. Counsel for the assessee. The contention

P a g e | 3 ITA No.584/JPR/2025 Nand Kishore Sharma raised therein was that, the Hon’ble Madras High Court in the case of True Blue Voice India Pvt. Ltd. and another Vs. Chief Commissioner of Income Tax (TDS) and others [2025] 472 ITR 480 had categorically held that for AYs 2012-13, 2013-14 and 2014-15, when the provisions of Section 200A(1)(c) of the Act was not there on the statute to enable charging fees u/s 234E of the Act while processing TDS statements/ returns u/s 200A of the Act, no fees could be imposed u/s 234E of the Act while processing the TDS statements/returns u/s 200A of the Act. Copy of the judgment was placed before us and our attention was drawn to para 3 of the order where the contention of the petitioner that while processing the statements of the TDS u/s 200A of the Act, the authority had no power to impose late fees u/s 234E of the Act for AYs 2012-13 to 2014-15 since Section 200A(1)(c) of the Act was introduced only with effect from 01.06.2015, which empowered the AOto levy fees. The contents of the said submissions of the assessee at para 3 of the order are as under:- …. 3. The case of the petitioner is that when the petitioner had processed the statement of TDS under Section 200A of the Act, the Authorities have no power to impose the late fee under Section 234E of the Act for the assessment years 2012-2013 to 2014-2015, since Section 200A(1)(c) of the Act was introduced only with effect from 01.06.2015 whereas Section 234E of the Act was introduced with effect from 01.07.2012. Further, Section 234E of the Act empowers the Authority to impose late fee of a sum of Rs.200/- for everyday delay in filing the e- TDS returns as mentioned therein. ….. 6. We have gone through the order of the Hon’ble Madras High Court and we find that, the Hon’ble High court has categorically held while processing the TDS returns u/s 200A of the Act, no fees u/s 234E of the Act be levied for AYs 2012-13 to 2014-15 when Section 200A(1)(c) of

P a g e | 4 ITA No.584/JPR/2025 Nand Kishore Sharma the Act was not introduced on the statute. The relevant findings of the Hon’ble High Court at para 11 of its order is as under:

Finance (No.2) Act, 2009 inserted section 200A in the Act which provides for processing of TDS statements for determining the amount payable or refundable to the deductor. However, as section 243E was inserted after the insertion of section 200A in the Act, the existing provisions of section 200A of the Act does not provide for determination of fee payable under section 234E of the Act at the time of processing of TDS statements. It is, therefore, proposed to amend the provisions of section 200A of the Act so as to enable

P a g e | 5 ITA No.584/JPR/2025 Nand Kishore Sharma computation of fee payable under section 234E of the Act at the time of processing of TDS statement under section 200A of the Act. Currently, the provisions of sub-section (3) of section 200 of the Act enable the deductor to furnish TDS correction statement and consequently, section 200A of the Act allows processing of the TDS correction statement. However, currently, there does not exist any provision for allowing a collector to file correction statement in respect of TCS statement which has been furnished. It is, therefore, proposed to amend the provisions of section 206C of the Act so as to allow the collector to furnish TCS correction statement. Currently, there does not exist any provision in the Act to enable processing of the TCS statement filed by the collector as available for processing of TDS statement. As the mechanism of TCS statement is similar to TDS statement, it is proposed to insert a provision in the Act for processing of TCS statements on the line of existing provisions for processing of TDS statement contained in section 200A of the Act. The proposed provision shall also incorporate the mechanism for computation of fee payable under section 234E of the Act.” 13. A reading of the above makes it clear that since no mechanism was available for determination of late fee payable under Section 234E of the Act at the time of processing TDS statements. Thus it was proposed to amend the provisions of Section 200A of the Act, so as to enable the computation of fee payable under Section 234E of the Act at the time of processing of TDS statement under Section 200A of he Act. Thus, the said sub-Section 200A(1)(c) of the Act was came to be inserted with effect from 01.06.2015. 14. Now the dispute is with regard 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 the respondent advanced his arguments on the aspect of the imposition of late fee by applying Section 200A(1)(c) of the Act retrospectively. This Court is not in agreement with the said submissions of the respondent. Since, there was no provision for imposing the late fee under Section 234E of the Act while filing and processing the TDS returns under Section 200A of the Act, clause (c) to Sub-Section (1) to Section 200A was introduced with effect from 01.07.2012. Therefore, the aforesaid submission made by the learned counsel for the respondent is rejected by this Court.

P a g e | 6 ITA No.584/JPR/2025 Nand Kishore Sharma 16. Further it was stated by the respondent that they have no power to waive the late fee and only the Commissioner of Income Tax is empowered to pass the revised order by proper application of provision of Section 264C of the Act. 17. In view of the above, it is made clear that the respondent had had imposed the late fee only under Section 234E of the Act for the assessment years 2012-2013, 2013-2014, 2015- 2015. However, Section 200A(1)(c) of the Act was not introduced during the said assessment years. In the absence of any provisions under Section 200A of the Act, when they have processed the application for TDS under Section 200A, no late fee can be imposed under Section 234E. Hence, in such view of the matter, this Court feels that the impugned orders are liable to be set aside 18. Accordingly, the impugned orders dated 24.09.2021 are set aside and the Department is directed to consider the reply of the petitioner dated 16.04.2019 as a revision application, which was earlier considered as a waiver application, and pass appropriate orders by taking into consideration of the order passed by this Court within a period of eight weeks from the date of receipt of copy of this order. 19. With the above directions, these writ petitions are disposed of. Consequently, the connected miscellaneous petitions are also closed. ……. 7. Having noted so, we find that the Ld. CIT(A) had held the provisions applicable noting that the processing was done after 01.06.2015 when the provisions of Section 200A(1)(c) of the Act were very much there on the statute. We do not find any merit in the reasoning adopted by the Ld. CIT(A) since the Hon’ble Madras High Court has clearly held that for AYs 2012-13 to 2014-15, the provisions of Section 234E of the Act were held not applicable even when the returns were processed after 01-06-2015, i.e. on 24-09-21. In the facts of the present case, the assessment year being AY 2013-14, therefore the decision of the Hon’ble Madras High Court would apply. 8. The Ld. DR has been unable to distinguish the said decision of the Hon’ble High Court before us, though he has relied on the order of the Ld. CIT(A), that since processing of the return was done after the

P a g e | 7 ITA No.584/JPR/2025 Nand Kishore Sharma provision of Section 200A(1)(c) of the Act was brought on the statue enabling the levy of fee u/s 324E of the Act, the levy had been returned made by the AO. 9. Since the Ld. Counsel for the assessee has demonstrated the issue to be squarely covered in its favour by the decision of the Hon’ble Madras High Court, we have no hesitation in holding that the levy of fees u/s 234E in the present case along with interest thereon amounting in all to Rs.48,830/- was not in accordance with law. The order passed therefore confirming the levy of fees is set aside. 10. In effect, appeal of the assessee is allowed. Order pronounced in the Open Court on 29.10.2026

Sd/- Sd/- (T.R. Senthil Kumar) (Annapurna Gupta) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated 29.10.2026 Mittali, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT By Order, Mittali Digitally signed by: Mittali Asst. Registrar DN: CN = Mittali email = ITAT, Jaipur mittaligupta34671@gmail.com C = IN O = Personal Date: 2026.10.30 12:50:34 +05'30'