ROSHAN FOODS PRIVATE LIMITED,KOCHI vs. ACIT, CORPORATE CIRCLE 2(1), KOCHI, KOCHI

The solitary issue raised in all these appeals is whether the CIT(A) has erred in confirming the Assessing Officer’s order u/s 200A of the I.T.Act, wherein he levied late fees u/s 234E of the I.T.Act for various quarters.

The brief facts of the case are as follows: For the assessment years under consideration the assessee has filed TDS returns in Form No.26Q, belatedly. The Assessing Officer levied fee and interest u/s 234E r.w.s. 200A of the I.T.Act for late filing of TDS returns in Form No.26Q. The details of the same are as follows:-

Aggrieved by the orders of the Assessing Officer, the assessees filed appeals before the first appellate authority. However, the CIT(A) confirmed the A.O.’s orders for levying fees u/s 234E of the I.T.Act. The CIT(A) relied on the judgment of the Hon’ble Gujarat High Court in the case of Rajesh Kourani v. Union of India reported in (2017) 83 taxmann.com 137 (Gujarat).

Aggrieved by the orders of the CIT(A), the assessee has filed these appeals before the Tribunal. The learned AR submitted that the issue raised is squarely covered in favour of the assessee by the following judicial pronouncements:-

The learned Departmental Representative relied on the orders of the CIT(A).

We have heard rival submissions and perused the material on record. The Assessing Officer cannot make any adjustment other than one prescribed in section 200A of the 4 & Ors. M/s.Roshan Foods Private Limited. Act. Prior to 01.06.2015, there was no enabling provision in section 200A of the Act for making adjustment in respect of statement filed by the assessee with regard to tax deducted at source by levying fees u/s 234E of the Act. The Parliament for the first time enabled the Assessing Officer to make adjustment by levying fees u/s 234E of the Act with effect from 01.06.2015. The Hon’ble jurisdictional High Court in the case of Olari Little Flower Kuries (P.) Ltd. v. Union of India reported in (2022) 440 ITR 26 (Ker.), has held that since provision of section 200A of the I.T.Act was amended to enable computation of fee payable u/s 234E of the I.T.Act at the time of processing of return and said amendment came into effect from 01.06.2015 (in view of CBDT Circular No.19 of 2015 dated 17.11.2015) intimations issued u/s 200A of the I.T.Act dealing with fee for belated filing of TDS returns for the period prior to 01.06.2015 were invalid and were to be set aside. Therefore, going by the dictum laid down by the Hon’ble jurisdictional High Court judgment in the case of Olari Little Flower Kuries (P.) Ltd. v. Union of India (supra), the levy of late fee for the various quarters for financial years 2013-2014 to 2014-2015 cannot be sustained in order passed u/s 200A of the I.T.Act, prior to 01.06.2015.

As regards the CIT(A) placing reliance on the judgment of the Hon’ble Gujarat High Court in the case of Rajesh Kourani v. Union of India (supra), we notice that the Hon’ble Kerala High Court in the case of M/s.Sarala Memorial Hospital v. Union of India (supra) has distinguished the Hon’ble Gujarat

In the result, the appeals filed by the assessee are allowed Order pronounced on this 10th day of August, 2022.