RAMNAGAR SUBURBAN SOCIETY,COIMBATORE vs. INCOME TAX OFFICER, TDS WARD

The sole grievance of the assessee in the captioned appeals is confirmation of levy of fees u/s. 234E for late filing of quarterly TDS returns. The aforesaid fees have been levied for AYs 2013-14 & 2014- 15 for late filing of TDS returns. Since the assessee did not file order issued u/s 200A, the appeal was held to be deficient by Ld. first appellate authority. Aggrieved, the assessee is in further appeal before us.

The Ld. AR has referred to the decision of Hon’ble Single Judge of High Court of Madras in the case of M/s True Blue Voice India Pvt. Ltd. & Ors. (WP Nos.2700 & 2703 of 2022 dated 09-10-2023). The Hon’ble Court, in para-17, held that Sec.200A(1)(c) was not introduced during the AYs 2012-13, 2013-14 & 2014-15. In the absence of any such provisions prevailing at the time of processing of TDS return, no late fees u/s 234E could be levied.

However, another decision of Hon’ble Single judge of Hon’ble High Court of Madras in the case of Conceria International (P.) Ltd. (157 Taxmann.com 335; dated 10-11-2023) has been brought on record which has taken a view against the assesseee.

After going through both the orders, we find that the subsequent decision in the case of Conceria International (P.) Ltd. (157 Taxmann.com 335; dated 10-11-2023) has considered all the relevant contrary case laws holding the field. These include the decision of Hon’ble High Court of Karnataka in the case of Fatheraj Singhvi vs. Union of India (73 Taxmann.com 252) and also the contrary decision of Hon’ble Gujarat High Court in the case of Rajesh Kourani vs. UOI (83 Taxmann.com 137). After elaborate discussion and upon due consideration of various case laws, it was held by the Court as under: - 7.1. A reading of the above provision would show that liability to pay, by way of fee gets attracted under sub-section (1) to section 234E of the Act once a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C of the Act and the liability shall continue for every day during which the failure continues. Sub-section (3) to Section 234E of the Act provides that the fee referred to in sub-section (1) to section 234E of the Act shall be paid before delivering or causing to be delivered a Statement in accordance with sub-section (3) of section200 or the proviso to sub-section (3) of section 206C. In other words, sub-section (3) provides for self assessment/payment of fee payable under sub- section (1) to section 234E of the Act. Importantly, sub-section(4) to section 234E of the Act provides that the above provisions would apply to statement referred to in sub-section (3) to section 200 of the Act which is to delivered or cause to delivered on or after 1-7- 2012.