M/S AGRAWAL DRUGS & CHEMICALS P LTD,INDORE vs. THE ITO-TDS -2, INDORE

Facts, in brief, are that the ITO-TDS-II, Indore passed order on 06.2.2018 u/s 200A(1) of the I.T. Act levying a penalty u/s 234E at Rs.63,000/-. Ld. CIT(A), relying upon the decision of Hon’ble Gujarat High Court in case of Rajesh Kourani (order dated 20.6.2017), confirmed the action of the AO on the ground that Section 234E is a charging provision creating a charge for levying fee for certain defaults in filing the statements and under no circumstances, a machinery provision can override or overrule a charging provision.

Before us, nobody represented the assesse whereas the ld. CIT-DR relied upon the orders of the Revenue authorities.

We have heard ld. CIT-DR and gone through the material available on record. We find that in the instant case, the date of filling of return is 26.3.2014 and as per Sec.200A, the time limit for Agrawal Drugs and Chemicals 3 ITA 91 of 2021 sending the intimation is not later than 31.3.2015. The relevant part of the section 200A is reproduced hereunder:

On consideration of above provision, we find that the order passed by the AO u/s 200A(1) is dated 6.2.2018 which is much later than last date for sending the intimation u/s 200A of the Act i.e 31.3.2015. Thus, in view of the above provision, the date for passing order u/s 200A(1) has expired and the intimation is barred by limitation . Therefore, we quash the order dated 6.2.2018 passed by the AO u/s 200A(1) and delete the fee of Rs.63,000/- levied u/s 234E of the Act.