SMT. YOJANA B. BIRANJE,KOLHAPUR vs. DEPUTY COMMISSIONER OF INCOME-TAX, CPC-TDS, BANGALORE

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ITA 1094/PUN/2019Status: DisposedITAT Pune06 July 2022AY 2015-163 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the amendment to Section 200A, which allowed for the levy of fees under Section 234E, was effective from June 1, 2015. Since the default occurred before this date, the levy was not applicable.

What were the facts?

The assessee appealed against the charging of interest under Section 234E for the first quarter of Assessment Year 2015-16. The CIT(A) upheld the levy of this interest.

What were the issues?

Whether the levy of fee under Section 234E for a default in furnishing TDS statement prior to the amendment of Section 200A is justified.

Which sections of the Income-tax Act were involved?

Section 234E,Section 200A,Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, PUNE

Before: SHRI R.S. SYAL & SHRI S.S. VISWANETHRA RAVI

For Respondent: Shri M.G. Jasnani

आदेश / ORDER PER S.S. VISWANETHRA RAVI, JM :

1.

This appeal by the assessee against the order dated 17-12-2018 passed by the Commissioner of Income Tax (Appeals)-1, Kolhapur [‘CIT(A)’] upholding the charging of interest u/s. 234E of the Act for assessment year 2015-16 (Q1).

2.

We find no representation on behalf of the assessee nor any application filed seeking adjournment. Thus, the assessee called absent and set ex-parte. Therefore, we proceed to dispose of the appeal by hearing the ld. DR and perusing the material available on record.

3.

The assessee raised four grounds of appeal amongst which the only issue emanates for our consideration is as to whether the CIT(A) is justified in upholding the order passed u/s. 154 r.w.s. 200A confirming the levy of fees u/s. 234E of the Act for default in furnishing TDS statement for Quarter 1 of A.Y. 2015-16 in the facts and circumstances of the case.

4. Heard ld. DR and perused the material available on record. We note that fee for default in furnishing the TDS statements have been imposed on the assessee u/s. 234E of the Act for the 1st quarter of the financial year 2014-15 (A.Y. 2015-16). Section 200A deals with processing of TDS statements of tax deducted at source and Clause (c) of sub-section (1) of section 200A was inserted by the Finance Act 2015 w.e.f. 01-06-2015 providing for the levy of fee u/s.234E of the Act. In such circumstances, levy of such fee u/s.234E can be levied only after 01-06-2015 for the default committed by the assessee. We find that the period covered in the present subject appeal before us is Quarter 1 of financial year 2014-15 (A.Y. 2015-16). Therefore, we hold that the amendment by insertion of Clause (c) to sub-section (1) of section 200A of the Act is not applicable, therefore, the order of CIT(A) is not justified and it is set aside. Thus, grounds raised by the assessee are allowed.

6.

In the result, the appeal of assessee is allowed.

Order pronounced in the open court on 06th July, 2022.

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